Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened sequentially and compared to the same quarter last year, as operating cash flow declined relative to revenue. Capital expenditure increased from both periods, contributing to the lower free cash flow.
- Revenue was slightly lower than the prior quarter but higher than the year-ago quarter. Operating cash flow declined from the prior quarter and was roughly stable compared to the year-ago period, while capital expenditure rose, resulting in a lower free cash flow and a weakened conversion rate.
- Compared to the immediately preceding quarter, free cash flow and margin were lower. Versus the same quarter one year earlier, free cash flow was lower despite higher revenue, and the margin also decreased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.7B
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
23.4%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 75.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 15.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$39.2B | 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 decreased from the prior quarter and was only slightly higher than the year-ago quarter, while revenue improved year-over-year. This weakened the cash conversion efficiency.
The free cash flow margin fell sequentially and year-over-year, driven by lower operating cash flow relative to revenue and higher capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than the year-ago quarter. Operating cash flow declined from the prior quarter and was roughly stable compared to the year-ago period, while capital expenditure rose, resulting in a lower free cash flow and a weakened conversion rate.
Compared to the immediately preceding quarter, free cash flow and margin were lower. Versus the same quarter one year earlier, free cash flow was lower despite higher revenue, and the margin also decreased.
The increase in capital expenditure relative to the prior year is a concrete item to monitor for its effect on future free cash flow generation.