Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose compared to the prior quarter and the same quarter last year, yet free cash flow margin narrowed. Operating cash flow declined, primarily driving the lower free cash flow despite reduced capital expenditure.
- Revenue increased, but operating cash flow decreased substantially, resulting in a free cash flow margin that fell compared to both the prior quarter and the year-ago quarter. Capital expenditure was lower than the prior quarter but higher than a year ago, providing a partial offset to the cash flow decline.
- Compared to the immediately preceding quarter, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was higher, while operating cash flow, free cash flow, and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$17.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.2B
Cash generated by operations before capital spending.
CapEx
$329.0M
Capital spending and related asset purchases.
FCF margin
29.4%
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 | $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% |
| 2025-12-31 | $16.6B | $5.2B | $329.0M | $4.9B | 29.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 269.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$59.3B | 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 decline
Operating cash flow decreased significantly from both the prior quarter and the year-ago quarter, despite higher revenue. This was the strongest observable driver of the lower free cash flow and narrower margin.
The reduction in operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, but operating cash flow decreased substantially, resulting in a free cash flow margin that fell compared to both the prior quarter and the year-ago quarter. Capital expenditure was lower than the prior quarter but higher than a year ago, providing a partial offset to the cash flow decline.
Compared to the immediately preceding quarter, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was higher, while operating cash flow, free cash flow, and free cash flow margin were lower.
Monitor whether operating cash flow can recover from its current level, as it is the primary factor behind the decline in free cash flow margin.