Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than both the prior quarter and the year-ago quarter. Operating cash flow improved, leading to a higher free cash flow and an improved free cash flow margin.
- Operating cash flow as a percentage of revenue improved, supported by a moderate increase in capital expenditure relative to revenue. The resulting free cash flow margin was higher than both comparison periods.
- Compared to the prior quarter, operating cash flow and free cash flow were higher, while capital expenditure also increased. Compared to the same quarter one year earlier, operating cash flow and free cash flow were higher, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.3B
Cash generated by operations before capital spending.
CapEx
$689.0M
Capital spending and related asset purchases.
FCF margin
22.9%
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 | $10.4B | $1.4B | $484.0M | $933.0M | 9.0% |
| 2025-06-30 | $11.1B | $2.0B | $502.0M | $1.5B | 13.9% |
| 2025-09-30 | $11.4B | $2.8B | $496.0M | $2.3B | 20.2% |
| 2025-12-31 | $11.5B | $3.3B | $689.0M | $2.6B | 22.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 147.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.4B | 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 Improvement
Operating cash flow increased from the prior quarter and from the year-ago quarter, outpacing the change in revenue.
This improvement was the strongest observable factor in the free cash flow margin expansion.
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, supported by a moderate increase in capital expenditure relative to revenue. The resulting free cash flow margin was higher than both comparison periods.
Compared to the prior quarter, operating cash flow and free cash flow were higher, while capital expenditure also increased. Compared to the same quarter one year earlier, operating cash flow and free cash flow were higher, while capital expenditure was lower.
Monitor capital expenditure levels, as they increased sequentially and could affect future free cash flow generation.