Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the same quarter last year, driven by a substantial increase in operating cash flow. The free cash flow margin expanded significantly, reflecting stronger cash conversion from revenue.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow rose markedly, and after a moderate increase in capital expenditure, free cash flow improved substantially, resulting in a much higher free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin improving from a low level. Versus the same quarter one year earlier, all metrics were higher, and free cash flow margin was improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$398.0M
Capital spending and related asset purchases.
FCF margin
19.0%
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 | $9.3B | $1.1B | $277.0M | $815.0M | 8.8% |
| 2025-06-30 | $9.0B | $308.0M | $305.0M | $3.0M | 0.0% |
| 2025-09-30 | $9.7B | $717.0M | $299.0M | $418.0M | 4.3% |
| 2025-12-31 | $10.5B | $2.4B | $398.0M | $2.0B | 19.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 300.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | 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.
Operating Cash Flow Surge
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow. This occurred even as capital expenditure increased only moderately.
The strong operating cash flow drove free cash flow to a higher level and expanded the free cash flow margin significantly.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow rose markedly, and after a moderate increase in capital expenditure, free cash flow improved substantially, resulting in a much higher free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin improving from a low level. Versus the same quarter one year earlier, all metrics were higher, and free cash flow margin was improved.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.