Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter, driven by a substantial increase in operating cash flow. Compared to the same quarter last year, free cash flow and margin were higher.
- Revenue was stable relative to the prior quarter, while operating cash flow rose markedly, leading to a much higher free cash flow margin. Capital expenditure was modest and had a limited effect on conversion.
- Compared to the immediately preceding quarter, free cash flow and margin were substantially higher, driven by a much larger operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were also higher, with operating cash flow higher and revenue slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.1B
Cash generated by operations before capital spending.
CapEx
$54.0M
Capital spending and related asset purchases.
FCF margin
50.1%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $6.0B | $3.3B | $47.0M | $3.3B | 55.1% |
| 2025-03-31 | $5.3B | $2.7B | $38.0M | $2.7B | 51.0% |
| 2025-06-30 | $6.1B | $205.0M | $32.0M | $173.0M | 2.8% |
| 2025-09-30 | $6.1B | $3.1B | $54.0M | $3.0B | 50.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 128.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$22.2B | 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 Surge
Operating cash flow rose sharply from the prior quarter, while revenue was unchanged. This was the strongest observable driver of the improvement in free cash flow.
The increase in operating cash flow directly lifted free cash flow and margin to higher levels.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to the prior quarter, while operating cash flow rose markedly, leading to a much higher free cash flow margin. Capital expenditure was modest and had a limited effect on conversion.
Compared to the immediately preceding quarter, free cash flow and margin were substantially higher, driven by a much larger operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were also higher, with operating cash flow higher and revenue slightly lower.
Monitor whether operating cash flow can sustain its current level in future quarters.