Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly in the current quarter, supported by a higher operating cash flow and a slightly larger capital expenditure. The free cash flow margin expanded compared to both the prior quarter and the same quarter last year.
- Revenue increased from the prior quarter, and operating cash flow grew at a faster pace, resulting in a higher free cash flow. Capital expenditure rose, but the increase was modest relative to the operating cash flow improvement, leading to a stronger free cash flow margin.
- Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and margin all improved. Versus the same quarter one year earlier, the same metrics were higher, with the margin widening notably.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$19.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$6.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$7.0B
Cash generated by operations before capital spending.
CapEx
$381.0M
Capital spending and related asset purchases.
FCF margin
42.1%
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 | $15.1B | $7.0B | $291.0M | $6.8B | 44.7% |
| 2025-03-31 | $13.3B | $1.6B | $235.0M | $1.4B | 10.5% |
| 2025-06-30 | $15.4B | $5.2B | $269.0M | $4.9B | 31.7% |
| 2025-09-30 | $15.8B | $7.0B | $381.0M | $6.6B | 42.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 3571.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Expansion
Operating cash flow increased more than revenue, supporting a higher free cash flow margin. The company’s filing context cited higher net revenues and lower acquisition-related cash expenses as contributing factors, partially offset by higher litigation payments and contingent consideration.
Stronger operating cash generation enhances the company’s financial flexibility for investment and liability management.
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 grew at a faster pace, resulting in a higher free cash flow. Capital expenditure rose, but the increase was modest relative to the operating cash flow improvement, leading to a stronger free cash flow margin.
Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and margin all improved. Versus the same quarter one year earlier, the same metrics were higher, with the margin widening notably.
Monitor the trend in capital expenditure, as it increased sequentially and year-over-year, which could affect the pace of free cash flow growth.