Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter showed a marked improvement in cash generation, with revenue rising and operating cash flow turning positive. The free cash flow margin was positive, contrasting with a negative margin in the prior quarter.
- The conversion of revenue into operating cash flow improved strongly, as operating cash flow was substantially higher relative to revenue. Capital expenditure remained modest, supporting a solid free cash flow.
- Compared with the immediately preceding quarter, cash flow metrics strengthened, with operating cash flow shifting from negative to positive. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$121.0M
Capital spending and related asset purchases.
FCF margin
2.9%
The share of revenue converted into free cash flow.
TTM FCF yield
2.6%
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | $1.3B | Cash generated by operations before capital spending. |
| Capital expenditures | $121.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $1.1B | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $23.7B | $959.0M | $279.0M | $680.0M | 2.9% |
| 2022-09-30 | $22.8B | $8.5B | $288.0M | $8.2B | 35.8% |
| 2022-12-31 | $22.4B | -$5.1B | $275.0M | -$5.4B | -24.1% |
| 2023-03-31 | $26.7B | $6.7B | $223.0M | $6.5B | 24.2% |
| 2023-06-30 | $26.7B | $3.2B | $264.0M | $2.9B | 10.9% |
| 2023-09-30 | $26.4B | $1.3B | $234.0M | $1.0B | 3.9% |
| 2023-12-31 | $26.5B | -$7.1B | $283.0M | -$7.4B | -28.0% |
| 2024-03-31 | $29.6B | $423.0M | $177.0M | $246.0M | 0.8% |
| 2024-06-30 | $29.5B | $1.2B | $114.0M | $1.1B | 3.7% |
| 2024-09-30 | $29.4B | $1.9B | $130.0M | $1.7B | 5.9% |
| 2024-12-31 | $29.2B | -$528.0M | $154.0M | -$682.0M | -2.3% |
| 2025-03-31 | $32.1B | $331.0M | $95.0M | $236.0M | 0.7% |
| 2025-06-30 | $32.4B | $1.3B | $114.0M | $1.2B | 3.6% |
| 2025-09-30 | $32.6B | $971.0M | $135.0M | $836.0M | 2.6% |
| 2025-12-31 | $32.5B | -$1.7B | $202.0M | -$1.9B | -5.7% |
| 2026-03-31 | $39.6B | $1.3B | $121.0M | $1.1B | 2.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 95.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.0B | 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 Improvement
Operating cash flow turned positive after being negative in the prior quarter and was higher than the year-ago quarter, marking a clear strengthening.
This shift directly drove a large increase in free cash flow and a positive free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The conversion of revenue into operating cash flow improved strongly, as operating cash flow was substantially higher relative to revenue. Capital expenditure remained modest, supporting a solid free cash flow.
Compared with the immediately preceding quarter, cash flow metrics strengthened, with operating cash flow shifting from negative to positive. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher.
Monitor the consistency of operating cash flow in forthcoming quarters, given the shift from negative in the prior quarter to positive this quarter.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $49.3B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.6% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 45.9x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |