Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow margin improved sequentially but weakened relative to the year-ago period.
- Operating cash flow was substantially higher than capital expenditure, resulting in a free cash flow margin that remained elevated. The conversion of revenue into free cash flow was supported by strong operating cash generation relative to modest capital spending.
- Compared to the prior quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue, operating cash flow, capital expenditure, and free cash flow were higher, but the free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$17.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.7B
Cash generated by operations before capital spending.
CapEx
$178.0M
Capital spending and related asset purchases.
FCF margin
63.8%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $7.5B | $4.8B | $95.0M | $4.7B | 63.3% |
| 2025-03-31 | $7.3B | $2.4B | $159.0M | $2.2B | 30.6% |
| 2025-06-30 | $8.1B | $4.6B | $40.0M | $4.6B | 56.1% |
| 2025-09-30 | $8.6B | $5.7B | $178.0M | $5.5B | 63.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 139.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.7B | 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 was higher than both the prior quarter and the same quarter last year, contributing to the increase in free cash flow. The rise in operating cash flow was the most notable factor in the sequential improvement in free cash flow margin.
Higher operating cash flow, combined with increased capital expenditure, still resulted in a higher free cash flow compared to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than capital expenditure, resulting in a free cash flow margin that remained elevated. The conversion of revenue into free cash flow was supported by strong operating cash generation relative to modest capital spending.
Compared to the prior quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue, operating cash flow, capital expenditure, and free cash flow were higher, but the free cash flow margin weakened.
Monitor capital expenditure levels, which increased from both the prior quarter and the year-ago period, as they directly affect free cash flow.