Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased compared to the prior quarter but increased from the same quarter last year. Free cash flow was near zero despite positive operating cash flow, as capital expenditure fully absorbed operating cash flow.
- Operating cash flow was lower than revenue, resulting in a thin free cash flow margin. Capital expenditure matched operating cash flow, producing minimal free cash flow.
- Compared to the prior quarter, revenue and free cash flow were lower, while operating cash flow was slightly higher and capital expenditure significantly higher. Versus the same quarter last year, revenue and operating cash flow were higher, but capital expenditure increased substantially, compressing free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$12.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$1.5B
Capital spending and related asset purchases.
FCF margin
0.2%
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 |
|---|---|---|---|---|---|
| 2025-02-28 | $5.8B | $925.0M | $607.0M | $318.0M | 5.5% |
| 2025-05-31 | $6.3B | $2.4B | $851.0M | $1.5B | 24.4% |
| 2025-08-31 | $8.2B | $1.4B | $647.0M | $736.0M | 9.0% |
| 2025-11-30 | $6.3B | $1.5B | $1.5B | $12.0M | 0.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 2.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 23.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$25.5B | 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 Increase
Capital expenditure in the current quarter was substantially higher than both the prior quarter and the year-ago quarter, more than offsetting the improvement in operating cash flow.
This reduced free cash flow to nearly zero despite higher operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than revenue, resulting in a thin free cash flow margin. Capital expenditure matched operating cash flow, producing minimal free cash flow.
Compared to the prior quarter, revenue and free cash flow were lower, while operating cash flow was slightly higher and capital expenditure significantly higher. Versus the same quarter last year, revenue and operating cash flow were higher, but capital expenditure increased substantially, compressing free cash flow.
Monitor capital expenditure relative to operating cash flow, as the current quarter’s near-complete absorption limited free cash flow.