Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow increased compared to both the prior quarter and the year-ago quarter. However, free cash flow remained minimal as capital expenditure rose to a level that largely consumed operating cash flow.
- Operating cash flow improved year over year and quarter over quarter. Conversion to free cash flow was constrained by a significant rise in capital expenditure, leaving a narrow free cash flow margin.
- Compared to the prior quarter, revenue and operating cash flow grew moderately, while free cash flow remained at a low level with an unchanged margin. Year over year, free cash flow declined markedly as capital expenditure rose more than operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$430.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$35.5B
Cash generated by operations before capital spending.
CapEx
$35.1B
Capital spending and related asset purchases.
FCF margin
0.2%
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 | $187.8B | $45.6B | $27.8B | $17.8B | 9.5% |
| 2025-03-31 | $155.7B | $17.0B | $25.0B | -$8.0B | -5.1% |
| 2025-06-30 | $167.7B | $32.5B | $32.2B | $332.0M | 0.2% |
| 2025-09-30 | $180.2B | $35.5B | $35.1B | $430.0M | 0.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 2.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 19.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $11.8B | 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 Increase
Capital expenditure rose substantially compared to both the prior quarter and the year-ago period, limiting free cash flow generation despite higher operating cash flow.
The elevated investment level is the primary factor behind the minimal free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved year over year and quarter over quarter. Conversion to free cash flow was constrained by a significant rise in capital expenditure, leaving a narrow free cash flow margin.
Compared to the prior quarter, revenue and operating cash flow grew moderately, while free cash flow remained at a low level with an unchanged margin. Year over year, free cash flow declined markedly as capital expenditure rose more than operating cash flow.
Monitor whether capital expenditure will continue to absorb a large portion of operating cash flow, potentially limiting future free cash flow generation.