Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow turned positive year-over-year but declined sharply from the prior quarter, reflecting a lower operating cash flow despite higher revenue. The free cash flow margin remained minimal, highlighting the impact of capital expenditure relative to operating cash flow.
- Revenue increased, but operating cash flow was significantly lower than the previous quarter and only slightly above capital expenditure, resulting in a thin free cash flow margin.
- Compared to the prior quarter, operating cash flow and free cash flow weakened, and the margin contracted. Compared to the same quarter one year earlier, both operating cash flow and free cash flow improved from negative levels.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$98.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$796.0M
Cash generated by operations before capital spending.
CapEx
$698.0M
Capital spending and related asset purchases.
FCF margin
0.1%
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 | $97.7B | $1.9B | $768.0M | $1.1B | 1.1% |
| 2025-03-31 | $94.6B | $4.6B | $743.0M | $3.8B | 4.0% |
| 2025-06-30 | $98.9B | $1.9B | $607.0M | $1.3B | 1.3% |
| 2025-09-30 | $102.9B | $796.0M | $698.0M | $98.0M | 0.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -2.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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 decline
Operating cash flow decreased substantially from the prior quarter, more than offsetting the revenue increase, and remained only modestly above capital expenditure.
If this trend continues, free cash flow generation could remain constrained.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, but operating cash flow was significantly lower than the previous quarter and only slightly above capital expenditure, resulting in a thin free cash flow margin.
Compared to the prior quarter, operating cash flow and free cash flow weakened, and the margin contracted. Compared to the same quarter one year earlier, both operating cash flow and free cash flow improved from negative levels.
Monitor the sustainability of operating cash flow given the notable decline from the preceding quarter.