Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter and the same quarter last year. Operating cash flow improved significantly from the prior quarter and was higher than a year earlier, supporting a positive free cash flow margin.
- Operating cash flow as a percentage of revenue improved from the prior quarter, reflecting a higher conversion of revenue into cash from operations. Capital expenditure increased relative to both comparison periods.
- Compared to the prior quarter, free cash flow turned from negative to positive, while the margin improved from negative to positive. Versus the same quarter last year, free cash flow was slightly lower and the margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$584.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$542.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$963.2M
Capital spending and related asset purchases.
FCF margin
13.4%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2025-03-31 | $4.6B | $954.4M | $792.2M | $162.2M | 3.6% |
| 2025-06-30 | $4.3B | $858.3M | $906.1M | -$47.8M | -1.1% |
| 2025-09-30 | $4.2B | $599.2M | $671.8M | -$72.6M | -1.7% |
| 2025-12-31 | $4.1B | $1.5B | $963.2M | $542.3M | 13.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 99.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 23.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$17.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Recovery
Operating cash flow was higher than the prior quarter and the year-ago quarter, driving the positive free cash flow. The filing context notes that profitability is influenced by commodity price movements, hedging, and throughput volumes, among other factors.
The recovery in cash from operations was the primary factor behind the turnaround in free cash flow from negative to positive.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue improved from the prior quarter, reflecting a higher conversion of revenue into cash from operations. Capital expenditure increased relative to both comparison periods.
Compared to the prior quarter, free cash flow turned from negative to positive, while the margin improved from negative to positive. Versus the same quarter last year, free cash flow was slightly lower and the margin was slightly lower.
The level of capital expenditure, which increased from both the prior quarter and the year-ago period, should be monitored for its effect on future free cash flow.