Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, driven by operating cash flow that was stable compared to a year ago but significantly lower than the prior quarter. Capital expenditure remained elevated, resulting in a very thin free cash flow margin.
- Revenue was unchanged from the prior quarter and slightly higher than a year ago. Operating cash flow was lower than the prior quarter but slightly above the year-ago level. Capital expenditure was similar to both comparison periods, leaving free cash flow positive but minimal, with a margin that improved from negative a year ago but weakened sharply from the prior quarter.
- Compared to the prior quarter, operating cash flow was lower and free cash flow fell sharply, with the margin weakening. Versus the same quarter last year, operating cash flow was slightly higher and free cash flow improved from negative to positive, though the margin remained very thin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$29.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$970.0M
Cash generated by operations before capital spending.
CapEx
$941.0M
Capital spending and related asset purchases.
FCF margin
0.1%
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 |
|---|---|---|---|---|---|
| 2024-11-09 | $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% |
| 2025-11-08 | $33.9B | $970.0M | $941.0M | $29.0M | 0.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -2.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.0B | 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 than the prior quarter, which was the primary factor behind the sharp reduction in free cash flow. Revenue was unchanged, so the decline in cash generation from operations is the key observable driver.
The lower operating cash flow directly compressed free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter and slightly higher than a year ago. Operating cash flow was lower than the prior quarter but slightly above the year-ago level. Capital expenditure was similar to both comparison periods, leaving free cash flow positive but minimal, with a margin that improved from negative a year ago but weakened sharply from the prior quarter.
Compared to the prior quarter, operating cash flow was lower and free cash flow fell sharply, with the margin weakening. Versus the same quarter last year, operating cash flow was slightly higher and free cash flow improved from negative to positive, though the margin remained very thin.
Monitor whether operating cash flow can sustain or improve from the current level, given its decline from the prior quarter.