Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined sharply from the prior quarter and also fell compared to the same quarter last year, driven by a significant drop in operating cash flow. The free cash flow margin weakened substantially versus both comparison periods.
- Revenue was slightly higher than both the prior quarter and the year-ago quarter, but operating cash flow was much lower, resulting in a lower free cash flow and a weaker free cash flow margin. Capital expenditure was slightly higher than the prior quarter but slightly lower than the year-ago quarter.
- Compared to the prior quarter, operating cash flow and free cash flow were both substantially lower, and the free cash flow margin weakened. Compared to the same quarter one year earlier, operating cash flow and free cash flow were also lower, and the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$370.0M
Capital spending and related asset purchases.
FCF margin
12.8%
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 | $11.2B | $2.0B | $260.0M | $1.7B | 15.1% |
| 2025-06-30 | $12.3B | $3.9B | $361.0M | $3.6B | 29.0% |
| 2025-09-30 | $12.2B | $6.3B | $320.0M | $6.0B | 49.0% |
| 2025-12-31 | $12.5B | $2.0B | $370.0M | $1.6B | 12.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 147.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$34.6B | 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 Decline
Operating cash flow was significantly lower than both the prior quarter and the year-ago quarter, while revenue was slightly higher. This divergence drove the sharp reduction in free cash flow and margin.
The lower operating cash flow was the strongest observable driver of the weakened free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than both the prior quarter and the year-ago quarter, but operating cash flow was much lower, resulting in a lower free cash flow and a weaker free cash flow margin. Capital expenditure was slightly higher than the prior quarter but slightly lower than the year-ago quarter.
Compared to the prior quarter, operating cash flow and free cash flow were both substantially lower, and the free cash flow margin weakened. Compared to the same quarter one year earlier, operating cash flow and free cash flow were also lower, and the margin weakened.
Monitor the level of operating cash flow in the next quarter, as it was the primary factor behind the decline in free cash flow.