Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the quarter, free cash flow was higher than both the preceding quarter and the same quarter one year earlier, supported by a significant increase in revenue. However, the free cash flow margin weakened compared to both prior periods, indicating a less efficient conversion of revenue into free cash flow.
- Revenue was substantially higher than in both the prior quarter and the year-ago quarter, while operating cash flow also increased. Capital expenditure was slightly higher, and free cash flow rose accordingly, but the free cash flow margin declined, reflecting a lower proportion of revenue converted to free cash flow.
- Compared to the immediately preceding quarter, revenue and free cash flow were both substantially higher, while the free cash flow margin was lower. Versus the same quarter one year earlier, revenue and free cash flow were higher, and the margin was also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$879.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$809.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$538.0M
Capital spending and related asset purchases.
FCF margin
3.4%
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 | $3.7B | -$285.0M | $310.0M | -$595.0M | -16.2% |
| 2025-06-30 | $4.0B | -$1.1B | $406.0M | -$1.5B | -36.8% |
| 2025-09-30 | $4.4B | $854.0M | $469.0M | $385.0M | 8.8% |
| 2025-12-31 | $23.8B | $1.3B | $538.0M | $809.0M | 3.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 851.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue growth
Revenue was substantially higher than both prior periods, enabling higher free cash flow even as the conversion margin narrowed.
This revenue increase was the primary factor behind the improvement in absolute free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was substantially higher than in both the prior quarter and the year-ago quarter, while operating cash flow also increased. Capital expenditure was slightly higher, and free cash flow rose accordingly, but the free cash flow margin declined, reflecting a lower proportion of revenue converted to free cash flow.
Compared to the immediately preceding quarter, revenue and free cash flow were both substantially higher, while the free cash flow margin was lower. Versus the same quarter one year earlier, revenue and free cash flow were higher, and the margin was also lower.
The free cash flow margin, which declined relative to both the prior quarter and the year-ago quarter, warrants monitoring.