Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus both the prior quarter and the same quarter last year, supported by higher revenue and operating cash flow. The free cash flow margin strengthened sequentially and remained stable year-over-year.
- Revenue increased while operating cash flow grew at a faster pace, leading to a higher free cash flow margin. Capital expenditure rose moderately, but the conversion from operating cash flow to free cash flow strengthened compared to both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin improving. Versus the same quarter last year, revenue and operating cash flow were higher, free cash flow was higher, and the margin was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$872.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$820.0M
Capital spending and related asset purchases.
FCF margin
21.7%
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 | $3.9B | $1.2B | $766.0M | $396.0M | 10.3% |
| 2025-06-30 | $3.6B | $1.6B | $647.0M | $1.0B | 27.8% |
| 2025-09-30 | $3.7B | $1.4B | $793.0M | $621.0M | 16.7% |
| 2025-12-31 | $4.0B | $1.7B | $820.0M | $872.0M | 21.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 87.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 20.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$31.9B | 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 Growth
Operating cash flow increased from both the prior quarter and the year-ago quarter, providing the primary support for the higher free cash flow. This occurred alongside revenue growth.
The stronger operating cash flow drove the 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.
Revenue increased while operating cash flow grew at a faster pace, leading to a higher free cash flow margin. Capital expenditure rose moderately, but the conversion from operating cash flow to free cash flow strengthened compared to both the prior quarter and the year-ago quarter.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin improving. Versus the same quarter last year, revenue and operating cash flow were higher, free cash flow was higher, and the margin was slightly higher.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased sequentially and year-over-year.