Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was substantially higher than the preceding quarter and slightly higher than the same quarter last year, driven by a large increase in operating cash flow. The free cash flow margin improved significantly compared to the prior quarter and remained elevated relative to the year-ago period.
- Revenue was higher than the prior quarter but slightly lower than the year-ago quarter. Operating cash flow was very strong relative to revenue, resulting in a free cash flow margin above one hundred percent, indicating cash conversion exceeded revenue for the period.
- Compared to the preceding quarter, revenue, operating cash flow, and free cash flow all improved markedly, with free cash flow margin rising from very low to very high. Versus the same quarter one year earlier, revenue was slightly lower, but operating cash flow and free cash flow were both higher, and the margin improved modestly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.4B
Cash generated by operations before capital spending.
CapEx
$222.0M
Capital spending and related asset purchases.
FCF margin
106.2%
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 | $4.4B | -$2.1B | $94.0M | -$2.2B | -49.9% |
| 2025-06-30 | $6.5B | $947.0M | $118.0M | $829.0M | 12.8% |
| 2025-09-30 | $2.6B | $193.0M | $157.0M | $36.0M | 1.4% |
| 2025-12-31 | $3.9B | $4.4B | $222.0M | $4.2B | 106.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -752.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.7% | 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 Strength
Operating cash flow was the strongest observable driver, increasing substantially from both the prior quarter and the year-ago quarter, while capital expenditure rose only modestly. This combination produced a large free cash flow and a very high margin.
The elevated operating cash flow relative to revenue was the primary factor behind the quarter's free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter but slightly lower than the year-ago quarter. Operating cash flow was very strong relative to revenue, resulting in a free cash flow margin above one hundred percent, indicating cash conversion exceeded revenue for the period.
Compared to the preceding quarter, revenue, operating cash flow, and free cash flow all improved markedly, with free cash flow margin rising from very low to very high. Versus the same quarter one year earlier, revenue was slightly lower, but operating cash flow and free cash flow were both higher, and the margin improved modestly.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.