Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the prior quarter, with a higher margin, but was slightly below the year-ago level. Cash conversion strengthened as operating cash flow increased.
- Operating cash flow rose while capital expenditure declined, leading to a higher free cash flow margin compared to the previous quarter.
- Compared to the previous quarter, revenue, operating cash flow, free cash flow, and margin were all higher. Compared to the same quarter last year, revenue was higher, but free cash flow and margin were slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.2B
Cash generated by operations before capital spending.
CapEx
$34.0M
Capital spending and related asset purchases.
FCF margin
50.5%
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 |
|---|---|---|---|---|---|
| 2025-02-28 | $5.7B | $2.5B | $26.0M | $2.5B | 43.0% |
| 2025-05-30 | $5.9B | $2.2B | $47.0M | $2.1B | 36.5% |
| 2025-08-29 | $6.0B | $2.2B | $72.0M | $2.1B | 35.5% |
| 2025-11-28 | $6.2B | $3.2B | $34.0M | $3.1B | 50.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 168.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$779.0M | 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 increased from the prior quarter, providing the main lift to free cash flow.
The rise in operating cash flow was the strongest contributor to the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose while capital expenditure declined, leading to a higher free cash flow margin compared to the previous quarter.
Compared to the previous quarter, revenue, operating cash flow, free cash flow, and margin were all higher. Compared to the same quarter last year, revenue was higher, but free cash flow and margin were slightly lower.
Capital expenditure dropped sharply from both prior periods; its sustainability should be monitored.