Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened significantly compared to both the prior quarter and the same quarter last year, as operating cash flow declined despite higher revenue. Capital expenditure rose relative to both periods, further pressuring free cash flow.
- Revenue was higher than both the prior quarter and the year-ago quarter, but operating cash flow was lower than both, resulting in a weaker cash conversion. Capital expenditure increased, leading to a free cash flow that was lower than both comparison periods and a margin that contracted.
- Compared with the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, and the margin weakened. Relative to the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$870.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$1.5B
Capital spending and related asset purchases.
FCF margin
4.5%
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 | $18.3B | $1.7B | $991.0M | $660.0M | 3.6% |
| 2025-06-30 | $18.6B | $4.2B | $1.2B | $3.0B | 16.3% |
| 2025-09-30 | $19.2B | $4.4B | $1.3B | $3.1B | 16.3% |
| 2025-12-31 | $19.5B | $2.4B | $1.5B | $870.0M | 4.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 46.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$43.2B | 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 decline
Operating cash flow decreased from the prior quarter and also from the year-ago quarter, even though revenue was higher. This decline was the primary factor behind the reduction in free cash flow.
The drop in operating cash flow, together with higher capital expenditure, led to a substantial weakening of free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter, but operating cash flow was lower than both, resulting in a weaker cash conversion. Capital expenditure increased, leading to a free cash flow that was lower than both comparison periods and a margin that contracted.
Compared with the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, and the margin weakened. Relative to the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin were all lower.
Monitor the level of capital expenditure relative to operating cash flow, as it increased while operating cash flow declined.