Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both increased compared to the prior quarter and the same quarter last year. The free cash flow margin was slightly lower than the prior quarter but remained stable relative to the year-ago period.
- Operating cash flow was unchanged from the prior quarter and higher than a year ago, while capital expenditure increased from both comparison periods. Free cash flow matched the prior quarter and exceeded the year-ago level, with the margin slightly below the prior quarter but nearly even with the year-ago quarter.
- Compared to the prior quarter, revenue was higher, operating cash flow was unchanged, capital expenditure was higher, free cash flow was unchanged, and the margin was lower. Compared to the same quarter last year, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, while the margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$72.0M
Capital spending and related asset purchases.
FCF margin
35.5%
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 |
|---|---|---|---|---|---|
| 2024-11-29 | $5.6B | $2.9B | $48.0M | $2.9B | 51.2% |
| 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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 120.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth Supporting Cash Generation
Revenue was higher than both the prior quarter and the year-ago quarter, providing a larger base for cash generation. Operating cash flow remained steady sequentially and improved year-over-year, while free cash flow matched the prior quarter and exceeded the year-ago level.
The higher revenue contributed to a free cash flow level that was unchanged sequentially and higher year-over-year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was unchanged from the prior quarter and higher than a year ago, while capital expenditure increased from both comparison periods. Free cash flow matched the prior quarter and exceeded the year-ago level, with the margin slightly below the prior quarter but nearly even with the year-ago quarter.
Compared to the prior quarter, revenue was higher, operating cash flow was unchanged, capital expenditure was higher, free cash flow was unchanged, and the margin was lower. Compared to the same quarter last year, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, while the margin was slightly lower.
Monitor the trend in capital expenditure, which increased from both the prior quarter and the year-ago quarter.