Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter last year. Operating cash flow and free cash flow also increased, leading to an improved free cash flow margin.
- Operating cash flow as a percentage of revenue was higher than the prior quarter and the same quarter last year, while capital expenditure was lower than a year ago but higher than the prior quarter. The resulting free cash flow margin improved sequentially and year over year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all increased, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue and free cash flow were higher, while capital expenditure was lower, contributing to a higher free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.1B
Cash generated by operations before capital spending.
CapEx
$371.0M
Capital spending and related asset purchases.
FCF margin
25.5%
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 |
|---|---|---|---|---|---|
| 2025-03-28 | $5.7B | $1.3B | $245.0M | $1.1B | 18.4% |
| 2025-06-27 | $5.9B | $1.3B | $248.0M | $1.1B | 18.4% |
| 2025-09-26 | $6.1B | $1.7B | $292.0M | $1.4B | 22.6% |
| 2025-12-31 | $6.8B | $2.1B | $371.0M | $1.7B | 25.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 145.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.4% | 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.
Free Cash Flow Margin Improvement
The free cash flow margin rose compared to both the prior quarter and the same quarter last year, supported by higher operating cash flow relative to revenue and lower capital expenditure versus the prior year.
The improved margin indicates stronger cash generation efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue was higher than the prior quarter and the same quarter last year, while capital expenditure was lower than a year ago but higher than the prior quarter. The resulting free cash flow margin improved sequentially and year over year.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all increased, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue and free cash flow were higher, while capital expenditure was lower, contributing to a higher free cash flow margin.
Monitor the trend in capital expenditure, which increased from the prior quarter but remained below the year-ago level.