Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened in the current quarter compared to both the prior quarter and the same quarter last year. The decline was driven by lower operating cash flow and higher capital expenditure relative to revenue.
- Revenue was lower than the prior quarter but higher than the year-ago quarter. Operating cash flow decreased from both comparison periods, while capital expenditure increased, resulting in free cash flow that was lower than both the prior quarter and the same quarter last year.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all declined. Compared to the same quarter one year earlier, revenue improved, but operating cash flow, free cash flow, and free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.8B
Cash generated by operations before capital spending.
CapEx
$882.0M
Capital spending and related asset purchases.
FCF margin
24.3%
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 |
|---|---|---|---|---|---|
| 2025-03-28 | $11.1B | -$5.2B | $309.0M | -$5.5B | -49.5% |
| 2025-06-27 | $12.5B | $3.8B | $442.0M | $3.4B | 26.9% |
| 2025-09-26 | $12.5B | $5.0B | $479.0M | $4.6B | 36.6% |
| 2025-12-31 | $11.8B | $3.8B | $882.0M | $2.9B | 24.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 126.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.5% | 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.
Operating Cash Flow Decline
Operating cash flow was lower in the current quarter compared to both the prior quarter and the same quarter last year, despite revenue being higher than the year-ago period. This was the strongest observable factor behind the reduction in free cash flow.
The lower operating cash flow directly reduced free cash flow and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than the year-ago quarter. Operating cash flow decreased from both comparison periods, while capital expenditure increased, resulting in free cash flow that was lower than both the prior quarter and the same quarter last year.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all declined. Compared to the same quarter one year earlier, revenue improved, but operating cash flow, free cash flow, and free cash flow margin weakened.
Monitor the trend in capital expenditure, which was higher in the current quarter relative to both the prior quarter and the year-ago quarter.