Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and free cash flow margin declined compared to both the prior quarter and the year-ago quarter. Revenue was lower sequentially but higher year over year.
- Operating cash flow fell more than revenue, while capital expenditure also decreased, leading to a lower free cash flow margin.
- Relative to the previous quarter, operating cash flow, free cash flow, and free cash flow margin all weakened. Compared to the same quarter last year, these metrics were also lower, even though revenue was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$58.0M
Capital spending and related asset purchases.
FCF margin
11.7%
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 | $8.9B | $597.0M | $190.0M | $407.0M | 4.6% |
| 2025-06-30 | $11.2B | $1.3B | $364.0M | $955.0M | 8.5% |
| 2025-09-30 | $10.4B | $3.3B | $374.0M | $2.9B | 28.0% |
| 2025-12-31 | $9.8B | $1.2B | $58.0M | $1.1B | 11.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -996.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Weakening Cash Conversion
Free cash flow margin contracted as operating cash flow declined more than revenue, indicating less efficient cash conversion from sales.
The reduced margin points to lower cash generation potential from current revenue levels.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow fell more than revenue, while capital expenditure also decreased, leading to a lower free cash flow margin.
Relative to the previous quarter, operating cash flow, free cash flow, and free cash flow margin all weakened. Compared to the same quarter last year, these metrics were also lower, even though revenue was higher.
Monitor the trend of operating cash flow relative to revenue.