Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow turned positive, leading to positive free cash flow and a slim margin.
- Operating cash flow exceeded capital expenditure, generating free cash flow. The free cash flow margin, while slim, turned positive from negative in the prior and year-ago quarters.
- Compared to the previous quarter, revenue was higher and operating cash flow improved substantially, flipping free cash flow from negative to positive. Versus the same quarter a year ago, all metrics improved significantly, with revenue higher and cash flow from operations turning positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$6.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$238.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$885.0M
Capital spending and related asset purchases.
FCF margin
1.0%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $15.2B | -$3.5B | $648.0M | -$4.1B | -26.9% |
| 2025-03-31 | $19.5B | -$1.6B | $674.0M | -$2.3B | -11.7% |
| 2025-06-30 | $22.7B | $227.0M | $427.0M | -$200.0M | -0.9% |
| 2025-09-30 | $23.3B | $1.1B | $885.0M | $238.0M | 1.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -4.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$47.0B | 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 improvement
Operating cash flow this quarter was higher than both the prior quarter and the year-ago quarter, marking a clear improvement. This increase was the primary observable factor behind the positive free cash flow.
The positive free cash flow and margin demonstrate a strengthened cash conversion capability for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, generating free cash flow. The free cash flow margin, while slim, turned positive from negative in the prior and year-ago quarters.
Compared to the previous quarter, revenue was higher and operating cash flow improved substantially, flipping free cash flow from negative to positive. Versus the same quarter a year ago, all metrics improved significantly, with revenue higher and cash flow from operations turning positive.
The trend in capital expenditure relative to operating cash flow should be monitored, as it directly affects the free cash flow margin.