Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow improved from the prior quarter, yielding a higher free cash flow. Compared to the same quarter last year, free cash flow was lower despite higher revenue, as operating cash flow decreased and capital expenditure increased.
- Operating cash flow covered capital expenditure with a substantial surplus, resulting in a free cash flow margin that improved sequentially but weakened year over year.
- Revenue, operating cash flow, and free cash flow were all higher than the previous quarter. Free cash flow and its margin were lower than the year-ago quarter, while capital expenditure was higher than both comparison periods.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.0B
Cash generated by operations before capital spending.
CapEx
$382.0M
Capital spending and related asset purchases.
FCF margin
18.6%
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 | $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% |
| 2025-12-31 | $19.7B | $4.0B | $382.0M | $3.7B | 18.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 65.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | 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.
Sequential operating cash flow improvement
Operating cash flow increased from the prior quarter, supported by higher revenue. This led to a sequential rise in free cash flow, even as capital expenditure also increased.
The sequential improvement in cash generation strengthened free cash flow and margin relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow covered capital expenditure with a substantial surplus, resulting in a free cash flow margin that improved sequentially but weakened year over year.
Revenue, operating cash flow, and free cash flow were all higher than the previous quarter. Free cash flow and its margin were lower than the year-ago quarter, while capital expenditure was higher than both comparison periods.
The year-over-year decline in free cash flow margin warrants attention, as operating cash flow contracted while revenue expanded.