Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow rose sharply from the prior quarter, driven by a substantial increase in operating cash flow despite a slight uptick in capital spending. Compared to the same quarter last year, free cash flow was slightly lower, reflecting a modest decline in operating cash flow and a small rise in capital expenditure.
- Cash conversion improved markedly from the prior quarter, as operating cash flow more than offset capital expenditure to generate a significantly higher free cash flow margin. The margin weakened slightly from the same quarter last year, indicating a mixed trend in cash generation efficiency.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin improved significantly, driven by a strong increase in operating cash flow. Versus the same quarter one year earlier, free cash flow was slightly lower, while the free cash flow margin weakened modestly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.1B
Cash generated by operations before capital spending.
CapEx
$147.0M
Capital spending and related asset purchases.
FCF margin
51.0%
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 | $7.6B | $3.0B | $147.0M | $2.8B | 37.4% |
| 2025-03-31 | $6.7B | $1.8B | $104.0M | $1.7B | 24.8% |
| 2025-06-30 | $7.1B | $827.0M | $107.0M | $720.0M | 10.2% |
| 2025-09-30 | $7.8B | $4.1B | $147.0M | $4.0B | 51.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 129.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | 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 Surge
Operating cash flow increased substantially from the prior quarter, more than compensating for a slightly higher capital expenditure. This drove a significant improvement in free cash flow and margin.
The strong operating cash flow was the primary factor behind the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion improved markedly from the prior quarter, as operating cash flow more than offset capital expenditure to generate a significantly higher free cash flow margin. The margin weakened slightly from the same quarter last year, indicating a mixed trend in cash generation efficiency.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin improved significantly, driven by a strong increase in operating cash flow. Versus the same quarter one year earlier, free cash flow was slightly lower, while the free cash flow margin weakened modestly.
Monitor operating cash flow stability, as the large sequential swing suggests potential volatility in cash conversion.