Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as operating cash flow rose while capital expenditure declined. Compared to the same quarter last year, free cash flow margin was slightly lower despite higher revenue.
- Revenue was stable versus the prior quarter, but a higher operating cash flow and lower capital expenditure drove free cash flow higher. Free cash flow margin improved sequentially, though it remained below the year-ago level.
- Compared to the prior quarter, free cash flow and margin both improved, driven by higher operating cash flow. Versus the same quarter a year ago, revenue was higher but free cash flow margin was slightly lower, as operating cash flow growth lagged revenue growth.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$178.0M
Capital spending and related asset purchases.
FCF margin
16.8%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $6.2B | $1.6B | $255.0M | $1.3B | 21.5% |
| 2025-03-31 | $6.4B | $238.0M | $147.0M | $91.0M | 1.4% |
| 2025-06-30 | $7.0B | $918.0M | $202.0M | $716.0M | 10.2% |
| 2025-09-30 | $7.0B | $1.4B | $178.0M | $1.2B | 16.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 116.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Sequential Operating Cash Flow
Operating cash flow increased notably from the prior quarter, reaching a level higher than both the preceding quarter and the year-ago quarter. This was the primary factor behind the improved free cash flow and margin.
The higher operating cash flow more than offset the modest capital expenditure, resulting in a higher free cash flow and margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior quarter, but a higher operating cash flow and lower capital expenditure drove free cash flow higher. Free cash flow margin improved sequentially, though it remained below the year-ago level.
Compared to the prior quarter, free cash flow and margin both improved, driven by higher operating cash flow. Versus the same quarter a year ago, revenue was higher but free cash flow margin was slightly lower, as operating cash flow growth lagged revenue growth.
Monitor the trajectory of capital expenditure relative to operating cash flow, as a lower spend contributed to the sequential free cash flow improvement.