Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow increased from both the prior quarter and the same quarter last year, leading to a stronger free cash flow margin. Capital expenditure was lower sequentially but higher year over year.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow improved notably from a year earlier, and free cash flow margin strengthened significantly compared to the same period last year, though it weakened from the preceding quarter.
- Compared to the immediate prior quarter, revenue and free cash flow were lower, and free cash flow margin weakened. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all improved substantially.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$20.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.8B
Cash generated by operations before capital spending.
CapEx
$265.0M
Capital spending and related asset purchases.
FCF margin
23.8%
The share of revenue converted into free cash flow.
TTM FCF yield
4.6%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-06-30 | $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% |
| 2026-03-31 | $15.0B | $3.8B | $265.0M | $3.6B | 23.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 512.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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 Growth
Operating cash flow was higher than both the preceding quarter and the same quarter last year. The filing attributes the year-over-year increase primarily to higher net revenues, timing of working capital, and lower litigation-related payments.
This driver was the strongest observable factor supporting free cash flow improvement from the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow improved notably from a year earlier, and free cash flow margin strengthened significantly compared to the same period last year, though it weakened from the preceding quarter.
Compared to the immediate prior quarter, revenue and free cash flow were lower, and free cash flow margin weakened. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all improved substantially.
Monitor the trajectory of operating cash flow, as it drove the improvement in free cash flow compared to the prior year.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $432.5B | Used as the denominator for FCF yield. |
| TTM FCF yield | 4.6% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.