Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved compared to both the prior quarter and the same quarter one year earlier, supported by higher operating cash flow. Revenue was lower than the immediately preceding quarter but higher than the year-ago quarter.
- Operating cash flow grew relative to the prior quarter and the year-ago period, while capital expenditure increased from the prior quarter but decreased from the year-ago period. The resulting free cash flow was higher than both comparison periods, and the margin strengthened.
- Sequentially, revenue declined but operating cash flow increased, leading to a stronger free cash flow margin. Compared to the same quarter last year, both revenue and operating cash flow were higher, and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.9B
Cash generated by operations before capital spending.
CapEx
$821.0M
Capital spending and related asset purchases.
FCF margin
22.2%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $6.8B | -$659.0M | $645.0M | -$1.3B | -19.3% |
| 2025-06-30 | $10.2B | $1.4B | $655.0M | $723.0M | 7.1% |
| 2025-09-30 | $11.1B | $2.0B | $592.0M | $1.4B | 12.6% |
| 2025-12-31 | $9.4B | $2.9B | $821.0M | $2.1B | 22.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 204.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.4B | 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 compared to both the prior quarter and the year-ago quarter, while revenue was mixed. This improvement in cash generation was the primary factor behind the higher free cash flow margin.
The stronger operating cash flow directly supported higher free cash flow and an improved margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew relative to the prior quarter and the year-ago period, while capital expenditure increased from the prior quarter but decreased from the year-ago period. The resulting free cash flow was higher than both comparison periods, and the margin strengthened.
Sequentially, revenue declined but operating cash flow increased, leading to a stronger free cash flow margin. Compared to the same quarter last year, both revenue and operating cash flow were higher, and free cash flow margin improved.
Monitor the level of debt, which increased relative to the prior year, and associated financing costs as noted in the filing.