Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the prior quarter but rose compared to the same quarter last year. Free cash flow improved sequentially but was lower than the year-ago period, with the margin showing a similar pattern.
- Operating cash flow was substantially higher than capital expenditure, resulting in a free cash flow margin that was positive but lower than the year-ago quarter. The conversion from revenue to free cash flow was supported by operating cash flow that exceeded capital spending by a wide margin.
- Compared to the immediately preceding quarter, revenue was lower while operating cash flow and free cash flow were higher, leading to an improved free cash flow margin. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.4B
Cash generated by operations before capital spending.
CapEx
$111.0M
Capital spending and related asset purchases.
FCF margin
3.4%
The share of revenue converted into free cash flow.
TTM FCF yield
5.9%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-06-30 | $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% |
| 2026-03-31 | $96.3B | $3.4B | $111.0M | $3.3B | 3.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 196.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Cash Flow Recovery
Operating cash flow increased substantially from the prior quarter, driving a similar rise in free cash flow. This improvement occurred even as revenue declined, indicating a stronger cash conversion efficiency in the current quarter.
The sequential improvement in free cash flow margin was the strongest observable driver of the quarter's cash generation performance.
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 was positive but lower than the year-ago quarter. The conversion from revenue to free cash flow was supported by operating cash flow that exceeded capital spending by a wide margin.
Compared to the immediately preceding quarter, revenue was lower while operating cash flow and free cash flow were higher, leading to an improved free cash flow margin. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weakened margin.
Monitor the trend in operating cash flow relative to revenue, as it shifted from a year-ago surplus to a lower level despite higher revenue.
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 | $97.0B | Used as the denominator for FCF yield. |
| TTM FCF yield | 5.9% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 17.4x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.