Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all reached their highest levels among the three quarters shown, driven by a substantial increase in cash generation. The free cash flow margin improved significantly compared to both the prior quarter and the same quarter a year earlier.
- Operating cash flow grew at a faster pace than revenue, while capital expenditure also rose but at a smaller relative scale, allowing free cash flow to expand more than proportionally. The resulting free cash flow margin was markedly higher than in either comparison period.
- Compared to the immediately preceding quarter, all key cash flow metrics improved, with operating cash flow and free cash flow rising and the margin strengthening. Versus the same quarter one year earlier, the improvement was even more pronounced across the same metrics.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$671.0M
Capital spending and related asset purchases.
FCF margin
16.5%
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 | $8.0B | $1.2B | $186.0M | $975.0M | 12.1% |
| 2025-06-30 | $9.1B | $367.0M | $173.0M | $194.0M | 2.1% |
| 2025-09-30 | $10.0B | $980.0M | $247.0M | $733.0M | 7.4% |
| 2025-12-31 | $11.0B | $2.5B | $671.0M | $1.8B | 16.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 49.3% | 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.
Strong operating cash flow generation
Operating cash flow reached its highest level among the three reported quarters, far outpacing the revenue increase. This was the primary factor behind the improvement in free cash flow and margin.
The strong cash conversion boosted free cash flow and margin to levels well above recent history, providing financial flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew at a faster pace than revenue, while capital expenditure also rose but at a smaller relative scale, allowing free cash flow to expand more than proportionally. The resulting free cash flow margin was markedly higher than in either comparison period.
Compared to the immediately preceding quarter, all key cash flow metrics improved, with operating cash flow and free cash flow rising and the margin strengthening. Versus the same quarter one year earlier, the improvement was even more pronounced across the same metrics.
Monitor whether the elevated level of capital expenditure is sustained, as it could pressure free cash flow if operating cash flow growth moderates.