Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved sharply from the prior quarter, driving a swing to positive free cash flow despite lower capital spending. Compared to the same quarter last year, free cash flow was stable while the margin narrowed slightly.
- Revenue increased from the prior quarter, and operating cash flow rose more than proportionally, resulting in a positive free cash flow margin. Capital expenditure declined, further supporting the conversion of operating cash flow into free cash flow.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved significantly, with free cash flow turning from negative to positive. Versus the same quarter one year earlier, operating cash flow was lower but free cash flow was similar, as capital expenditure was also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$458.0M
Capital spending and related asset purchases.
FCF margin
21.1%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $3.7B | $1.4B | $430.0M | $923.0M | 25.2% |
| 2025-03-31 | $4.3B | $599.0M | $768.0M | -$169.0M | -4.0% |
| 2025-06-30 | $3.8B | $572.0M | $690.0M | -$118.0M | -3.1% |
| 2025-09-30 | $4.8B | $1.5B | $458.0M | $1.0B | 21.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 154.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$15.4B | 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 rose substantially from the prior quarter, outpacing the increase in revenue. This was the strongest observable driver of the swing to positive free cash flow.
The improvement in operating cash flow was the primary factor behind the positive free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, and operating cash flow rose more than proportionally, resulting in a positive free cash flow margin. Capital expenditure declined, further supporting the conversion of operating cash flow into free cash flow.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved significantly, with free cash flow turning from negative to positive. Versus the same quarter one year earlier, operating cash flow was lower but free cash flow was similar, as capital expenditure was also lower.
Monitor whether operating cash flow can sustain its current level relative to revenue in the coming quarter.