Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all increased compared to the prior quarter, with free cash flow margin improving. Versus the same quarter last year, revenue and operating cash flow were higher, but free cash flow remained flat while capital expenditure rose, resulting in a lower free cash flow margin.
- Operating cash flow as a share of revenue improved sequentially, and after accounting for capital expenditure, free cash flow margin also rose. The conversion of revenue into free cash flow was higher than the prior quarter but lower than the same quarter a year ago due to increased capital spending.
- Compared to the preceding quarter, all key metrics improved: revenue, operating cash flow, and free cash flow were higher, and the free cash flow margin strengthened. Relative to the same quarter one year earlier, revenue and operating cash flow were higher, free cash flow was unchanged, capital expenditure was higher, and the free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.7B
Cash generated by operations before capital spending.
CapEx
$658.0M
Capital spending and related asset purchases.
FCF margin
17.5%
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 | $16.2B | $3.4B | $703.0M | $2.7B | 16.6% |
| 2025-03-31 | $14.2B | $1.3B | $710.0M | $579.0M | 4.1% |
| 2025-06-30 | $16.6B | $3.1B | $555.0M | $2.6B | 15.5% |
| 2025-09-30 | $17.6B | $3.7B | $658.0M | $3.1B | 17.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 133.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.7% | 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 growth
Operating cash flow rose more than revenue in the current quarter, driving the improvement in free cash flow margin relative to the prior quarter. The filing notes that consolidated operating cash flow for the first nine months decreased versus the same period a year ago, but the current quarter's operating cash flow was higher than both comparison periods.
Higher operating cash flow supported the increase in free cash flow despite higher capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue improved sequentially, and after accounting for capital expenditure, free cash flow margin also rose. The conversion of revenue into free cash flow was higher than the prior quarter but lower than the same quarter a year ago due to increased capital spending.
Compared to the preceding quarter, all key metrics improved: revenue, operating cash flow, and free cash flow were higher, and the free cash flow margin strengthened. Relative to the same quarter one year earlier, revenue and operating cash flow were higher, free cash flow was unchanged, capital expenditure was higher, and the free cash flow margin weakened.
Capital expenditure increased both sequentially and year over year; monitor whether this trend continues and its effect on free cash flow conversion.