Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter after a near-zero prior quarter, driven by a sharp increase in operating cash flow. Capital expenditure rose versus both the prior quarter and the year-ago quarter.
- Operating cash flow as a proportion of revenue improved versus the prior quarter, while free cash flow margin recovered from a negligible level. The conversion from revenue to free cash flow strengthened as operating cash flow growth outpaced the increase in capital expenditure.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved significantly. Relative to the same quarter one year earlier, revenue and operating cash flow were higher, while capital expenditure was higher and free cash flow and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$14.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$54.5B
Cash generated by operations before capital spending.
CapEx
$39.5B
Capital spending and related asset purchases.
FCF margin
7.0%
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 | $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% |
| 2025-12-31 | $213.4B | $54.5B | $39.5B | $14.9B | 7.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 70.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 18.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $18.0B | 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 increased sharply from the prior quarter, driving the recovery in free cash flow. The filing notes that operating cash flows result primarily from cash received from customers and other activities.
Higher operating cash flow was the primary factor behind the improvement in free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue improved versus the prior quarter, while free cash flow margin recovered from a negligible level. The conversion from revenue to free cash flow strengthened as operating cash flow growth outpaced the increase in capital expenditure.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved significantly. Relative to the same quarter one year earlier, revenue and operating cash flow were higher, while capital expenditure was higher and free cash flow and free cash flow margin were lower.
Monitor the trend in capital expenditure, as it rose substantially compared with both the prior quarter and the year-ago quarter.