Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow declined from both the prior quarter and the same quarter last year. Free cash flow decreased sequentially but its margin improved compared to the year-ago period, as capital expenditure was reduced.
- The free cash flow margin improved year-over-year because the decline in revenue was proportionally greater than the decline in free cash flow. Sequentially, the margin weakened as operating cash flow fell more sharply relative to revenue.
- Compared to the prior quarter, free cash flow and margin were lower. Compared to the same quarter one year earlier, free cash flow was lower but the margin was higher.
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
$702.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$832.0M
Capital spending and related asset purchases.
FCF margin
17.8%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $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% |
| 2025-12-31 | $3.9B | $1.5B | $832.0M | $702.0M | 17.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 124.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 21.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue and operating cash flow decline
Revenue and operating cash flow were lower than both the prior quarter and the year-ago quarter, driving a reduction in free cash flow.
Free cash flow margin weakened sequentially but improved year-over-year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The free cash flow margin improved year-over-year because the decline in revenue was proportionally greater than the decline in free cash flow. Sequentially, the margin weakened as operating cash flow fell more sharply relative to revenue.
Compared to the prior quarter, free cash flow and margin were lower. Compared to the same quarter one year earlier, free cash flow was lower but the margin was higher.
Monitor the trend in operating cash flow relative to revenue, as it directly influences free cash flow generation.