Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the prior quarter and the same quarter last year, while operating cash flow strengthened substantially, leading to higher free cash flow and a positive margin. The improvement in cash conversion was driven primarily by the rise in operating cash flow, with capital expenditure also increasing.
- Revenue was higher than both the preceding quarter and the year-ago quarter, while operating cash flow improved more than proportionally, resulting in free cash flow turning positive from a negative figure a year ago and a higher free cash flow margin compared to both periods.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year ago, operating cash flow and free cash flow improved significantly, while capital expenditure was higher and free cash flow margin turned from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$19.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$8.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$13.8B
Cash generated by operations before capital spending.
CapEx
$5.6B
Capital spending and related asset purchases.
FCF margin
12.9%
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 | $62.9B | $4.6B | $5.3B | -$726.0M | -1.2% |
| 2025-03-31 | $59.4B | $10.9B | $4.3B | $6.6B | 11.2% |
| 2025-06-30 | $61.4B | $10.1B | $4.9B | $5.2B | 8.5% |
| 2025-09-30 | $63.7B | $13.8B | $5.6B | $8.2B | 12.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 26.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.8% | 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.
Operating Cash Flow Strength
Operating cash flow was higher than the prior quarter and substantially higher than the same quarter last year, driving free cash flow from negative to positive and expanding the free cash flow margin.
The increase in operating cash flow was the primary factor behind the improved free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the preceding quarter and the year-ago quarter, while operating cash flow improved more than proportionally, resulting in free cash flow turning positive from a negative figure a year ago and a higher free cash flow margin compared to both periods.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year ago, operating cash flow and free cash flow improved significantly, while capital expenditure was higher and free cash flow margin turned from negative to positive.
Capital expenditure rose compared to both the prior quarter and the year-ago quarter, and its trajectory may influence future free cash flow levels.