Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both declined from the prior quarter, leading to a lower free cash flow margin. Compared to the same quarter last year, free cash flow improved despite a slight drop in revenue.
- Operating cash flow as a proportion of revenue weakened versus the prior quarter, while capital expenditure increased, resulting in a lower free cash flow margin. The conversion from revenue to free cash flow was mixed compared to the same quarter last year, as operating cash flow improved but capital expenditure also rose.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, while revenue was slightly lower and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.9B
Cash generated by operations before capital spending.
CapEx
$2.8B
Capital spending and related asset purchases.
FCF margin
2.4%
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 | $40.7B | $3.7B | $1.8B | $1.9B | 4.6% |
| 2025-06-30 | $50.2B | $6.3B | $2.1B | $4.2B | 8.4% |
| 2025-09-30 | $50.5B | $7.4B | $2.1B | $5.3B | 10.4% |
| 2025-12-31 | $45.9B | $3.9B | $2.8B | $1.1B | 2.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -10.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 from the prior quarter, which was the primary factor behind the lower free cash flow. The sequential drop in operating cash flow was not offset by a reduction in capital expenditure.
The weaker operating cash flow directly reduced free cash flow and the free cash flow margin for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue weakened versus the prior quarter, while capital expenditure increased, resulting in a lower free cash flow margin. The conversion from revenue to free cash flow was mixed compared to the same quarter last year, as operating cash flow improved but capital expenditure also rose.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, while revenue was slightly lower and free cash flow margin improved.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased sequentially while operating cash flow declined.