Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose from both the prior quarter and the year-ago period. Free cash flow was higher year-over-year but declined sequentially, resulting in a lowered margin compared to the previous quarter.
- Operating cash flow improved year-over-year but weakened from the prior quarter, while capital expenditure increased compared to both periods. Consequently, free cash flow margin was higher than a year ago but lower than the preceding quarter.
- Compared to the prior quarter, free cash flow and margin were lower despite revenue growth, indicating a weaker conversion rate. Versus the same quarter a year earlier, revenue, operating cash flow, free cash flow, and margin all improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.3B
Cash generated by operations before capital spending.
CapEx
$431.0M
Capital spending and related asset purchases.
FCF margin
14.5%
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 | $9.9B | $1.5B | $208.0M | $1.3B | 13.1% |
| 2025-06-30 | $11.0B | $2.2B | $327.0M | $1.9B | 17.4% |
| 2025-09-30 | $12.2B | $2.5B | $307.0M | $2.2B | 18.0% |
| 2025-12-31 | $12.7B | $2.3B | $431.0M | $1.9B | 14.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 72.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | 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.
Revenue Growth
The increase in revenue was the primary factor supporting a higher free cash flow compared to a year ago, despite higher capital spending.
Continued revenue expansion provides a solid base for cash generation, though the pace of cash conversion needs to be sustained.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved year-over-year but weakened from the prior quarter, while capital expenditure increased compared to both periods. Consequently, free cash flow margin was higher than a year ago but lower than the preceding quarter.
Compared to the prior quarter, free cash flow and margin were lower despite revenue growth, indicating a weaker conversion rate. Versus the same quarter a year earlier, revenue, operating cash flow, free cash flow, and margin all improved.
Monitor the trend of operating cash flow relative to revenue to see whether cash conversion stabilizes or weakens further.