Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose versus both the prior quarter and the year-ago quarter, while operating cash flow improved from negative to positive year-over-year but declined sequentially, leading to a lower free cash flow margin. The filing's management discussion and analysis provides additional context on financial results.
- Operating cash flow exceeded capital expenditure, producing positive free cash flow and a positive margin on revenue.
- Compared to the prior quarter, operating cash flow and free cash flow were lower, and the margin weakened. Versus the same quarter last year, all metrics improved as the prior year had negative operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$108.0M
Capital spending and related asset purchases.
FCF margin
1.1%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $90.8B | $7.7B | $169.0M | $7.6B | 8.3% |
| 2025-06-30 | $97.8B | -$918.0M | $189.0M | -$1.1B | -1.1% |
| 2025-09-30 | $103.2B | $2.4B | $28.0M | $2.4B | 2.3% |
| 2025-12-31 | $106.2B | $1.2B | $108.0M | $1.1B | 1.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 94.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.6B | 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 turnaround
Operating cash flow improved from negative in the year-ago quarter to positive in the current quarter, while capital expenditure was slightly lower.
This contributed to a positive free cash flow margin compared to a negative margin a year earlier.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, producing positive free cash flow and a positive margin on revenue.
Compared to the prior quarter, operating cash flow and free cash flow were lower, and the margin weakened. Versus the same quarter last year, all metrics improved as the prior year had negative operating cash flow.
The sequential decline in operating cash flow from the prior quarter is a key item to monitor.