Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus the prior quarter, driven by higher operating cash flow and lower capital expenditure. Compared to the same quarter last year, free cash flow was slightly lower despite higher revenue, as operating cash flow was stable and capital expenditure was similar.
- Revenue increased while operating cash flow rose, leading to a higher free cash flow margin than the prior quarter. The margin was slightly below the year-ago level, as operating cash flow was unchanged and capital expenditure was similar.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, with capital expenditure lower. Versus the same quarter last year, revenue was higher, operating cash flow was stable, capital expenditure was similar, and free cash flow was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$820.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$870.0M
Capital spending and related asset purchases.
FCF margin
19.3%
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 | $4.5B | $1.7B | $926.0M | $738.0M | 16.4% |
| 2025-03-31 | $4.5B | $1.9B | $934.0M | $1.0B | 22.2% |
| 2025-06-30 | $4.0B | $1.5B | $956.0M | $589.0M | 14.6% |
| 2025-09-30 | $4.3B | $1.7B | $870.0M | $820.0M | 19.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 119.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 20.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.2B | 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 growth
Operating cash flow increased from the prior quarter, contributing to higher free cash flow despite a reduction in capital expenditure. This was the strongest observable driver of the quarter's cash conversion improvement.
Higher operating cash flow combined with lower capital expenditure directly lifted free cash flow and margin versus the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow rose, leading to a higher free cash flow margin than the prior quarter. The margin was slightly below the year-ago level, as operating cash flow was unchanged and capital expenditure was similar.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, with capital expenditure lower. Versus the same quarter last year, revenue was higher, operating cash flow was stable, capital expenditure was similar, and free cash flow was slightly lower.
Monitor whether operating cash flow can sustain its sequential improvement given that it was unchanged from the year-ago level.