Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned strongly positive after a negative year-ago quarter, supported by a higher revenue base and operating cash flow more than covering capital expenditure. The quarter's free cash flow margin improved compared to both the prior quarter and the same quarter last year.
- Revenue was higher than the prior quarter, while operating cash flow increased significantly, resulting in free cash flow that was higher than the preceding quarter. Capital expenditure was slightly higher, but the free cash flow margin expanded, reflecting stronger cash conversion relative to revenue.
- Compared with the immediately preceding quarter, free cash flow and its margin were higher. Versus the same quarter one year earlier, both revenue and free cash flow were higher, and the free cash flow margin improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$18.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.2B
Cash generated by operations before capital spending.
CapEx
$654.0M
Capital spending and related asset purchases.
FCF margin
53.6%
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 | $10.0B | $5.8B | $495.0M | $5.3B | 53.1% |
| 2025-03-31 | $9.6B | $4.8B | $430.0M | $4.3B | 45.0% |
| 2025-06-30 | $10.3B | $4.4B | $619.0M | $3.7B | 36.3% |
| 2025-09-30 | $10.4B | $6.2B | $654.0M | $5.6B | 53.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 192.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.3% | 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.
Strong operating cash flow
Operating cash flow was higher than both the prior quarter and the year-ago quarter, and was the strongest observable driver of free cash flow in the current quarter.
Higher operating cash flow directly lifted free cash flow and margin, turning them positive versus a negative year-ago comparison.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, while operating cash flow increased significantly, resulting in free cash flow that was higher than the preceding quarter. Capital expenditure was slightly higher, but the free cash flow margin expanded, reflecting stronger cash conversion relative to revenue.
Compared with the immediately preceding quarter, free cash flow and its margin were higher. Versus the same quarter one year earlier, both revenue and free cash flow were higher, and the free cash flow margin improved from negative to positive.
Monitor whether operating cash flow remains at or above the current level in upcoming quarters, as it was the primary driver of the free cash flow improvement.