Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the fourth quarter, free cash flow was lower than the prior quarter but higher than the same quarter last year, reflecting a mixed performance. Cash conversion weakened sequentially as operating cash flow declined while revenue was higher.
- The free cash flow margin narrowed from the prior quarter due to lower operating cash flow and higher capital expenditure. Compared to the same quarter last year, the margin improved as operating cash flow grew faster than revenue.
- Sequentially, operating cash flow and free cash flow both decreased, while revenue increased modestly. Year over year, all metrics improved: revenue, operating cash flow, and free cash flow were all higher, and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.3B
Cash generated by operations before capital spending.
CapEx
$205.0M
Capital spending and related asset purchases.
FCF margin
39.4%
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 | $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% |
| 2025-12-31 | $7.9B | $3.3B | $205.0M | $3.1B | 39.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 143.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | 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 Decrease
Operating cash flow fell from the prior quarter despite a slight increase in revenue. This was the primary observable factor behind the sequential free cash flow decline.
This reduction directly caused free cash flow to decline, leading to a narrower free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The free cash flow margin narrowed from the prior quarter due to lower operating cash flow and higher capital expenditure. Compared to the same quarter last year, the margin improved as operating cash flow grew faster than revenue.
Sequentially, operating cash flow and free cash flow both decreased, while revenue increased modestly. Year over year, all metrics improved: revenue, operating cash flow, and free cash flow were all higher, and capital expenditure was higher.
Monitor the trend in capital expenditure, which increased from both the prior quarter and the same quarter last year.