Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive from the previous quarter, driven by higher revenue and operating cash flow, while capital expenditure decreased. The free cash flow margin improved sequentially but was slightly lower than the same quarter last year.
- Revenue increased compared to both the prior quarter and the year-ago period, supporting higher operating cash flow. Lower capital expenditure in the current quarter improved cash conversion, resulting in positive free cash flow and a robust margin.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, capital expenditure was substantially lower, and free cash flow moved from negative to positive. Versus the same quarter a year ago, revenue and operating cash flow were higher, capital expenditure increased from zero, while free cash flow remained stable and the margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$298.0M
Capital spending and related asset purchases.
FCF margin
36.3%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $4.8B | $1.7B | $399.0M | $1.3B | 27.9% |
| 2025-03-31 | $5.6B | $1.4B | $0 | $1.4B | 25.8% |
| 2025-06-30 | $5.1B | $1.2B | $1.4B | -$138.2M | -2.7% |
| 2025-09-30 | $6.0B | $2.5B | $298.0M | $2.2B | 36.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 216.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$45.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential cash flow improvement
The primary driver was a significant increase in operating cash flow combined with a sharp reduction in capital expenditure from the prior quarter, converting negative free cash flow into positive.
This strengthened free cash flow generation enhances financial flexibility for the company.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to both the prior quarter and the year-ago period, supporting higher operating cash flow. Lower capital expenditure in the current quarter improved cash conversion, resulting in positive free cash flow and a robust margin.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, capital expenditure was substantially lower, and free cash flow moved from negative to positive. Versus the same quarter a year ago, revenue and operating cash flow were higher, capital expenditure increased from zero, while free cash flow remained stable and the margin was slightly lower.
Monitor capital expenditure levels given the company's capital investment plan and their impact on free cash flow generation.