Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus the prior quarter and was higher than the same quarter last year, driven by a large increase in operating cash flow. The free cash flow margin strengthened sequentially and improved year-over-year.
- Revenue rose compared to both the prior quarter and the year-ago quarter. Operating cash flow increased significantly, while capital expenditure also grew, but at a slower pace, leading to a higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, free cash flow and free cash flow margin both improved substantially. Versus the same quarter last year, free cash flow was higher and the margin strengthened, despite a larger capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$73.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$24.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$48.4B
Cash generated by operations before capital spending.
CapEx
$24.0B
Capital spending and related asset purchases.
FCF margin
23.9%
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 | $96.5B | $39.1B | $14.3B | $24.8B | 25.7% |
| 2025-03-31 | $90.2B | $36.1B | $17.2B | $19.0B | 21.0% |
| 2025-06-30 | $96.4B | $27.7B | $22.4B | $5.3B | 5.5% |
| 2025-09-30 | $102.3B | $48.4B | $24.0B | $24.5B | 23.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 69.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 23.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$512.0M | 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 rose sharply from the prior quarter and was higher than the year-ago quarter, providing the primary lift to free cash flow. This increase occurred even as revenue grew, indicating a stronger cash conversion from revenue.
The strong operating cash flow more than offset the higher capital expenditure, resulting in a significantly improved free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose compared to both the prior quarter and the year-ago quarter. Operating cash flow increased significantly, while capital expenditure also grew, but at a slower pace, leading to a higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, free cash flow and free cash flow margin both improved substantially. Versus the same quarter last year, free cash flow was higher and the margin strengthened, despite a larger capital expenditure.
Monitor the trend in capital expenditure relative to operating cash flow, as its growth could affect future free cash flow generation.