Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved and operating cash flow strengthened, driving a sharp improvement in free cash flow from deeply negative to mildly positive. The free cash flow margin turned positive after two consecutive quarters of deeply negative readings.
- Cash conversion improved as operating cash flow rose relative to revenue, while capital expenditure declined sharply. The combination lifted free cash flow from a large deficit to a small surplus, with a positive though narrow margin.
- Compared with the immediately preceding quarter, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow improved from a deficit to a surplus. Versus the same quarter one year earlier, revenue was slightly higher, operating cash flow was lower, capital expenditure was sharply lower, and free cash flow improved from a deficit to a surplus.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$8.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$121.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$2.4B
Capital spending and related asset purchases.
FCF margin
0.9%
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 |
|---|---|---|---|---|---|
| 2024-12-28 | $14.3B | $3.2B | $5.8B | -$2.7B | -18.7% |
| 2025-03-29 | $12.7B | $813.0M | $5.2B | -$4.4B | -34.5% |
| 2025-06-28 | $12.9B | $2.0B | $3.5B | -$1.5B | -11.7% |
| 2025-09-27 | $13.7B | $2.5B | $2.4B | $121.0M | 0.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 3.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$35.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital expenditure reduction
Capital expenditure declined steeply from both the prior quarter and the year-ago quarter, far outpacing the changes in revenue and operating cash flow. This reduction was the primary factor that enabled free cash flow to turn positive.
The lower capital expenditure directly converted a negative free cash flow into a positive one, marking a significant inflection in cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion improved as operating cash flow rose relative to revenue, while capital expenditure declined sharply. The combination lifted free cash flow from a large deficit to a small surplus, with a positive though narrow margin.
Compared with the immediately preceding quarter, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow improved from a deficit to a surplus. Versus the same quarter one year earlier, revenue was slightly higher, operating cash flow was lower, capital expenditure was sharply lower, and free cash flow improved from a deficit to a surplus.
Monitor whether operating cash flow can sustain its improved level relative to revenue, given that capital expenditure remained elevated in absolute terms.