Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than the prior quarter and the year-ago quarter. Operating cash flow turned positive, leading to a less negative free cash flow and margin, though capital expenditure remained above operating cash flow.
- Revenue increased, and operating cash flow improved to a positive figure, but capital expenditure exceeded operating cash flow, resulting in negative free cash flow and a negative margin.
- Compared to the immediately preceding quarter, operating cash flow improved substantially, narrowing the free cash flow deficit and margin. Compared to the same quarter one year earlier, operating cash flow also improved, and free cash flow was less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$76.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$517.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$1.6B
Capital spending and related asset purchases.
FCF margin
-2.3%
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 | $19.5B | $24.8B | $1.7B | $23.1B | 118.7% |
| 2025-03-31 | $21.6B | -$58.7B | $1.5B | -$60.2B | -278.9% |
| 2025-06-30 | $21.7B | -$36.6B | $1.8B | -$38.3B | -176.9% |
| 2025-09-30 | $22.1B | $1.1B | $1.6B | -$517.0M | -2.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -13.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.3% | 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 Turnaround
Operating cash flow shifted from a substantial negative in the prior quarter and year-ago quarter to a positive figure, which is the strongest observable driver of the improved free cash flow.
The improvement in operating cash flow substantially reduced the free cash flow deficit, even though capital expenditure remained elevated.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, and operating cash flow improved to a positive figure, but capital expenditure exceeded operating cash flow, resulting in negative free cash flow and a negative margin.
Compared to the immediately preceding quarter, operating cash flow improved substantially, narrowing the free cash flow deficit and margin. Compared to the same quarter one year earlier, operating cash flow also improved, and free cash flow was less negative.
Monitor whether capital expenditure continues to exceed operating cash flow, as this is the primary factor keeping free cash flow negative.