Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow improved relative to the prior quarter despite a decline in operating cash flow, as capital expenditure decreased more than proportionally. Compared to the same quarter last year, free cash flow was lower, reflecting a higher capital expenditure and lower operating cash flow even as revenue grew.
- Revenue increased, but operating cash flow decreased, resulting in a lower cash conversion rate from revenue. However, the reduction in capital expenditure improved the conversion of operating cash flow to free cash flow.
- Sequentially, free cash flow and margin improved, driven by lower capital expenditure partially offsetting weaker operating cash flow. Year-over-year, free cash flow and margin weakened, as operating cash flow declined while capital expenditure rose.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$23.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$10.4B
Cash generated by operations before capital spending.
CapEx
$5.0B
Capital spending and related asset purchases.
FCF margin
8.6%
The share of revenue converted into free cash flow.
TTM FCF yield
5163.2%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-06-30 | $61.4B | $10.1B | $4.9B | $5.2B | 8.5% |
| 2025-09-30 | $63.7B | $13.8B | $5.6B | $8.2B | 12.9% |
| 2025-12-31 | $62.7B | $11.2B | $6.2B | $5.0B | 8.0% |
| 2026-03-31 | $63.1B | $10.4B | $5.0B | $5.5B | 8.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 53.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.9% | 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.
Capital expenditure management
Capital expenditure decreased from the prior quarter but increased from the prior year, directly influencing free cash flow direction.
The lower sequential capital expenditure boosted free cash flow, while the higher year-over-year expenditure reduced free cash flow compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, but operating cash flow decreased, resulting in a lower cash conversion rate from revenue. However, the reduction in capital expenditure improved the conversion of operating cash flow to free cash flow.
Sequentially, free cash flow and margin improved, driven by lower capital expenditure partially offsetting weaker operating cash flow. Year-over-year, free cash flow and margin weakened, as operating cash flow declined while capital expenditure rose.
Monitor the trend in operating cash flow relative to revenue, as it declined both sequentially and year-over-year despite revenue growth.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $462.4M | Used as the denominator for FCF yield. |
| TTM FCF yield | 5163.2% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.