Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow in the current quarter decreased compared to both the prior quarter and the same quarter last year. Free cash flow narrowed sharply, reflecting higher capital expenditure relative to operating cash flow.
- Operating cash flow was lower than in both comparison periods, while capital expenditure increased substantially, resulting in a minimal free cash flow and a very thin free cash flow margin.
- Compared with the prior quarter, revenue and operating cash flow both declined, while capital expenditure rose sharply, causing free cash flow and margin to weaken markedly. Versus the same quarter a year ago, revenue improved slightly, but a higher capital expenditure more than offset the operating cash flow gain, leading to a much lower free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$17.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.8B
Cash generated by operations before capital spending.
CapEx
$1.8B
Capital spending and related asset purchases.
FCF margin
0.3%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $5.3B | $1.8B | $1.8B | $17.5M | 0.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 2.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 34.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$47.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Surge
Capital expenditure in the current quarter was substantially higher than in both the prior quarter and the same quarter a year ago. This increase was the main observable reason for the sharp reduction in free cash flow.
The elevated capital expenditure outweighed operating cash flow, leaving free cash flow minimal despite stable revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than in both comparison periods, while capital expenditure increased substantially, resulting in a minimal free cash flow and a very thin free cash flow margin.
Compared with the prior quarter, revenue and operating cash flow both declined, while capital expenditure rose sharply, causing free cash flow and margin to weaken markedly. Versus the same quarter a year ago, revenue improved slightly, but a higher capital expenditure more than offset the operating cash flow gain, leading to a much lower free cash flow and margin.
Monitor the magnitude of capital expenditure relative to operating cash flow, as it is the primary factor compressing free cash flow in the current quarter.