Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the preceding quarter but higher than the same quarter one year earlier. Free cash flow margin improved compared to the previous quarter but weakened relative to the year-ago quarter.
- Operating cash flow decreased relative to the prior quarter while capital expenditure declined more sharply, resulting in slightly higher free cash flow. The free cash flow margin improved versus the preceding quarter as a result of the larger reduction in capital spending relative to the drop in operating cash flow.
- Compared to the preceding quarter, revenue was lower and operating cash flow was lower, yet free cash flow was slightly higher due to a larger decline in capital expenditure. Versus the same quarter one year earlier, revenue was higher and operating cash flow stable, but free cash flow was lower and free cash flow margin weaker because of higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$682.0M
Capital spending and related asset purchases.
FCF margin
26.5%
The share of revenue converted into free cash flow.
TTM FCF yield
3.7%
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | $2.4B | Cash generated by operations before capital spending. |
| Capital expenditures | $682.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $1.7B | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $5.7B | $618.1M | $437.9M | $180.2M | 3.2% |
| 2022-09-30 | $5.9B | $2.4B | $531.2M | $1.9B | 32.4% |
| 2022-12-31 | $5.9B | $2.2B | $528.7M | $1.7B | 28.2% |
| 2023-03-31 | $5.9B | $2.4B | $503.0M | $1.9B | 32.5% |
| 2023-06-30 | $6.5B | $1.7B | $526.0M | $1.1B | 17.7% |
| 2023-09-30 | $6.7B | $3.0B | $570.0M | $2.5B | 36.7% |
| 2023-12-31 | $6.4B | $2.5B | $757.0M | $1.7B | 27.0% |
| 2024-03-31 | $6.2B | $2.4B | $547.0M | $1.8B | 29.9% |
| 2024-06-30 | $6.5B | $1.7B | $628.0M | $1.1B | 16.3% |
| 2024-09-30 | $6.9B | $2.7B | $794.0M | $1.9B | 28.3% |
| 2024-12-31 | $6.4B | $2.6B | $807.0M | $1.8B | 28.6% |
| 2025-03-31 | $6.0B | $2.4B | $551.0M | $1.9B | 31.5% |
| 2025-06-30 | $6.8B | $2.0B | $744.0M | $1.3B | 18.3% |
| 2025-09-30 | $7.1B | $3.4B | $1.0B | $2.4B | 34.1% |
| 2025-12-31 | $7.0B | $2.7B | $1.1B | $1.6B | 23.4% |
| 2026-03-31 | $6.5B | $2.4B | $682.0M | $1.7B | 26.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 87.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.5% | 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.
Capital Expenditure Reduction
Capital expenditure was substantially lower than the preceding quarter and moderately higher than the year-ago quarter. This reduction was the strongest observable driver behind the quarter's free cash flow improvement relative to the prior period.
Lower capital expenditure directly supported a higher free cash flow and an improved free cash flow margin compared with the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased relative to the prior quarter while capital expenditure declined more sharply, resulting in slightly higher free cash flow. The free cash flow margin improved versus the preceding quarter as a result of the larger reduction in capital spending relative to the drop in operating cash flow.
Compared to the preceding quarter, revenue was lower and operating cash flow was lower, yet free cash flow was slightly higher due to a larger decline in capital expenditure. Versus the same quarter one year earlier, revenue was higher and operating cash flow stable, but free cash flow was lower and free cash flow margin weaker because of higher capital expenditure.
Monitor the trend in capital expenditure relative to operating cash flow, as the decline in capex from the preceding quarter was the key factor behind the improved free cash flow margin.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $189.6B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.7% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |