Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior year and slightly lower than the preceding quarter. Free cash flow improved significantly compared to both periods, driven by higher operating cash flow.
- Operating cash flow rose while capital expenditure increased modestly, resulting in a higher free cash flow and an improved free cash flow margin. The conversion from revenue to free cash flow strengthened compared to both the prior quarter and the same quarter last year.
- Compared to the immediately preceding quarter, revenue was slightly lower but operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, revenue was stable while operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$615.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$924.0M
Capital spending and related asset purchases.
FCF margin
1.8%
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 |
|---|---|---|---|---|---|
| 2024-08-17 | $33.9B | $1.1B | $875.0M | $247.0M | 0.7% |
| 2024-11-09 | $33.6B | $926.0M | $954.0M | -$28.0M | -0.1% |
| 2025-02-01 | $34.3B | $1.4B | $884.0M | $520.0M | 1.5% |
| 2025-08-16 | $33.9B | $1.5B | $924.0M | $615.0M | 1.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 101.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.1B | 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 Strength
Operating cash flow was the strongest observable driver, rising from both the prior quarter and the year-ago quarter, which directly lifted free cash flow despite higher capital expenditure.
The improvement in operating cash flow was the primary factor behind the higher free cash flow and free cash flow margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose while capital expenditure increased modestly, resulting in a higher free cash flow and an improved free cash flow margin. The conversion from revenue to free cash flow strengthened compared to both the prior quarter and the same quarter last year.
Compared to the immediately preceding quarter, revenue was slightly lower but operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, revenue was stable while operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the trend in capital expenditure, as it increased from both the prior quarter and the year-ago quarter, which could affect future free cash flow conversion.