Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter, leading to higher free cash flow and an improved free cash flow margin. Compared to the same quarter last year, revenue was higher while operating cash flow, free cash flow, and margin were broadly stable.
- Operating cash flow as a share of revenue was higher than the prior quarter, reflecting a stronger conversion rate. Capital expenditure remained modest relative to operating cash flow, supporting a free cash flow margin that was stable compared to the same quarter last year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin were essentially unchanged.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.3B
Cash generated by operations before capital spending.
CapEx
$48.0M
Capital spending and related asset purchases.
FCF margin
18.8%
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 | $16.5B | $1.7B | $50.0M | $1.7B | 10.0% |
| 2025-03-31 | $16.5B | $2.0B | $92.0M | $1.9B | 11.4% |
| 2025-06-30 | $16.6B | $1.9B | $1.0M | $1.9B | 11.3% |
| 2025-09-30 | $17.3B | $3.3B | $48.0M | $3.2B | 18.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 86.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 compared to the prior quarter, while capital expenditure remained low, resulting in higher free cash flow and an improved free cash flow margin.
The sequential rise in operating cash flow was the strongest observable driver of 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 as a share of revenue was higher than the prior quarter, reflecting a stronger conversion rate. Capital expenditure remained modest relative to operating cash flow, supporting a free cash flow margin that was stable compared to the same quarter last year.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin were essentially unchanged.
Monitor whether operating cash flow can sustain its current level relative to revenue, given the sequential improvement from the prior quarter.