Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin expanded significantly compared to both periods.
- Revenue increased modestly from the prior quarter and more notably from a year ago, while operating cash flow rose at a faster pace, lifting free cash flow. Capital expenditure remained stable sequentially and was lower than the year-ago level, further supporting cash conversion.
- Compared to the prior quarter, free cash flow and free cash flow margin were both higher, with operating cash flow improving while revenue was slightly higher. Versus the same quarter one year earlier, all metrics were substantially higher, particularly operating cash flow and free cash flow, which rose from a much lower base.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.7B
Cash generated by operations before capital spending.
CapEx
$44.0M
Capital spending and related asset purchases.
FCF margin
52.0%
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 | $4.5B | $1.7B | $36.0M | $1.6B | 36.8% |
| 2025-06-30 | $4.5B | $1.8B | $38.0M | $1.7B | 38.4% |
| 2025-09-30 | $4.9B | $2.2B | $44.0M | $2.2B | 44.1% |
| 2025-12-31 | $5.0B | $2.7B | $44.0M | $2.6B | 52.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 260.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | 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 strength
Operating cash flow was the strongest observable driver, increasing from both the prior quarter and the year-ago quarter, while capital expenditure remained contained. This directly lifted free cash flow and the free cash flow margin.
The improvement in operating cash flow was the primary factor behind the higher free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased modestly from the prior quarter and more notably from a year ago, while operating cash flow rose at a faster pace, lifting free cash flow. Capital expenditure remained stable sequentially and was lower than the year-ago level, further supporting cash conversion.
Compared to the prior quarter, free cash flow and free cash flow margin were both higher, with operating cash flow improving while revenue was slightly higher. Versus the same quarter one year earlier, all metrics were substantially higher, particularly operating cash flow and free cash flow, which rose from a much lower base.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.