Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower sequentially but higher year over year. Free cash flow improved from the prior quarter, driven by stronger operating cash flow, while the free cash flow margin expanded.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin rose compared to the prior quarter, reflecting a higher conversion of revenue into free cash flow, and was stable relative to the same quarter last year.
- Compared to the immediately preceding quarter, operating cash flow was higher and capital expenditure was slightly lower, leading to improved free cash flow and margin. Versus the same quarter one year earlier, operating cash flow and free cash flow were both higher, while the margin remained consistent.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.1B
Cash generated by operations before capital spending.
CapEx
$255.0M
Capital spending and related asset purchases.
FCF margin
17.3%
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 | $17.6B | $4.3B | $303.0M | $4.0B | 22.9% |
| 2025-03-31 | $14.5B | $4.4B | $244.0M | $4.1B | 28.4% |
| 2025-06-30 | $17.0B | $1.7B | $210.0M | $1.5B | 8.8% |
| 2025-09-30 | $16.3B | $3.1B | $255.0M | $2.8B | 17.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 162.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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.
Stronger Operating Cash Flow
Operating cash flow rose compared to both the prior quarter and the same quarter last year. This increase, alongside a slight decrease in capital expenditure versus the year-ago quarter, supported higher free cash flow.
Higher operating cash flow was the primary factor behind the sequential improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin rose compared to the prior quarter, reflecting a higher conversion of revenue into free cash flow, and was stable relative to the same quarter last year.
Compared to the immediately preceding quarter, operating cash flow was higher and capital expenditure was slightly lower, leading to improved free cash flow and margin. Versus the same quarter one year earlier, operating cash flow and free cash flow were both higher, while the margin remained consistent.
Monitor the trend in operating cash flow relative to revenue to assess whether the sequential improvement in conversion can be sustained.