Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow declined sharply, turning free cash flow negative despite lower capital spending. Revenue was slightly lower than the prior quarter but higher than the same quarter last year.
- Revenue remained relatively stable, but operating cash flow contracted dramatically, causing free cash flow to become negative and the free cash flow margin to turn from positive to negative.
- Compared to the prior quarter, operating cash flow and free cash flow were much lower, while revenue was slightly lower. Versus the same quarter last year, revenue was higher but operating cash flow and free cash flow were 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
-$209.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$84.0M
Cash generated by operations before capital spending.
CapEx
$293.0M
Capital spending and related asset purchases.
FCF margin
-0.4%
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 | $48.9B | $1.0B | $196.0M | $821.0M | 1.7% |
| 2025-06-30 | $49.8B | $2.1B | $267.0M | $1.8B | 3.6% |
| 2025-09-30 | $50.7B | $1.1B | $360.0M | $775.0M | 1.5% |
| 2025-12-31 | $49.7B | $84.0M | $293.0M | -$209.0M | -0.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -38.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$22.4B | 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 Decline
Operating cash flow decreased significantly compared to both the prior quarter and the same quarter last year, leading to negative free cash flow even with lower capital expenditure.
The company's cash conversion weakened substantially, as free cash flow turned negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained relatively stable, but operating cash flow contracted dramatically, causing free cash flow to become negative and the free cash flow margin to turn from positive to negative.
Compared to the prior quarter, operating cash flow and free cash flow were much lower, while revenue was slightly lower. Versus the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower.
Monitor whether operating cash flow recovers toward historical levels in the coming quarters.