Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. However, free cash flow turned negative as operating cash flow declined sharply and capital expenditure rose.
- Operating cash flow was significantly lower than revenue, resulting in a negative free cash flow margin. Capital expenditure exceeded operating cash flow, driving the free cash flow deficit.
- Compared to the prior quarter, operating cash flow weakened substantially and capital expenditure increased, flipping free cash flow from positive to negative. Versus the same quarter last year, operating cash flow was lower while capital expenditure was higher, leading to a much larger free cash flow deficit.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$2.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$735.0M
Cash generated by operations before capital spending.
CapEx
$3.0B
Capital spending and related asset purchases.
FCF margin
-8.8%
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 |
|---|---|---|---|---|---|
| 2025-03-29 | $23.6B | $6.8B | $1.9B | $4.9B | 20.7% |
| 2025-06-28 | $23.6B | $3.7B | $1.8B | $1.9B | 8.0% |
| 2025-09-27 | $22.5B | $4.5B | $1.9B | $2.6B | 11.4% |
| 2025-12-27 | $26.0B | $735.0M | $3.0B | -$2.3B | -8.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -94.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$41.0B | 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 dropped sharply from both the prior quarter and the year-ago quarter, while capital expenditure increased. This combination was the primary observable factor behind the negative free cash flow.
The decline in operating cash flow relative to capital expenditure caused free cash flow to turn negative despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was significantly lower than revenue, resulting in a negative free cash flow margin. Capital expenditure exceeded operating cash flow, driving the free cash flow deficit.
Compared to the prior quarter, operating cash flow weakened substantially and capital expenditure increased, flipping free cash flow from positive to negative. Versus the same quarter last year, operating cash flow was lower while capital expenditure was higher, leading to a much larger free cash flow deficit.
Monitor whether operating cash flow can recover toward historical levels to support positive free cash flow generation.