Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive compared to the same quarter last year, supported by higher operating cash flow and slightly lower capital expenditure. The free cash flow margin improved from negative to positive.
- Revenue increased year-over-year, and operating cash flow grew substantially, allowing free cash flow to become positive despite capital expenditure remaining similar. The free cash flow margin improved accordingly.
- Compared to the prior quarter, revenue was slightly higher but operating cash flow was lower, yet free cash flow increased due to stable capital expenditure. Versus the same quarter last year, all metrics improved significantly, with free cash flow turning from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$687.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.8B
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
4.1%
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 | $15.6B | $1.9B | $1.3B | $584.0M | 3.8% |
| 2025-03-31 | $14.0B | $2.4B | $1.2B | $1.2B | 8.2% |
| 2025-06-30 | $16.6B | $1.9B | $1.2B | $648.0M | 3.9% |
| 2025-09-30 | $16.7B | $1.8B | $1.2B | $687.0M | 4.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 48.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.4B | 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 Recovery
Operating cash flow increased substantially year-over-year, more than offsetting capital expenditure and driving free cash flow to positive territory.
This improvement was the primary factor behind the positive free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased year-over-year, and operating cash flow grew substantially, allowing free cash flow to become positive despite capital expenditure remaining similar. The free cash flow margin improved accordingly.
Compared to the prior quarter, revenue was slightly higher but operating cash flow was lower, yet free cash flow increased due to stable capital expenditure. Versus the same quarter last year, all metrics improved significantly, with free cash flow turning from negative to positive.
Monitor the trend in operating cash flow relative to revenue, as it declined sequentially despite higher revenue.