Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened versus both the immediate prior quarter and the same quarter one year earlier. The decline was driven by a lower operating cash flow relative to revenue, even as capital expenditure was reduced.
- Operating cash flow as a proportion of revenue decreased, resulting in a narrower free cash flow margin. Capital expenditure was trimmed but not enough to offset the drop in operating cash generation.
- Compared to the prior quarter, all key metrics—revenue, operating cash flow, free cash flow, and margin—were lower. Versus the year-ago quarter, revenue was slightly higher but both operating cash flow and free cash flow margin declined, indicating a less efficient cash conversion.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$608.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
8.9%
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 | $5.9B | $1.4B | $1.2B | $197.0M | 3.4% |
| 2025-03-31 | $5.6B | $1.1B | $1.2B | -$114.0M | -2.0% |
| 2025-06-30 | $7.5B | $2.2B | $1.3B | $934.0M | 12.4% |
| 2025-09-30 | $6.8B | $1.7B | $1.1B | $608.0M | 8.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 48.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 15.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.0B | 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 efficiency
Operating cash flow declined more sharply than revenue when compared to both the prior quarter and the year-ago period, compressing the free cash flow margin.
If this pattern continues, free cash flow may remain under pressure even if revenue stabilizes.
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 decreased, resulting in a narrower free cash flow margin. Capital expenditure was trimmed but not enough to offset the drop in operating cash generation.
Compared to the prior quarter, all key metrics—revenue, operating cash flow, free cash flow, and margin—were lower. Versus the year-ago quarter, revenue was slightly higher but both operating cash flow and free cash flow margin declined, indicating a less efficient cash conversion.
Monitor the trend in free cash flow margin as operating cash flow has not kept pace with revenue changes.