Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from both the prior quarter and the same quarter last year, yet free cash flow margin improved sequentially due to higher operating cash flow relative to revenue. Capital expenditure increased versus both comparison periods, partially offsetting the cash generation.
- Operating cash flow was higher than the prior quarter but unchanged from a year ago, while capital expenditure rose compared to both periods, resulting in free cash flow that was higher sequentially but lower year over year. The free cash flow margin strengthened from the preceding quarter but weakened relative to the same quarter last year.
- Compared to the prior quarter, revenue was lower but operating cash flow and free cash flow were higher, with a stronger free cash flow margin. Versus the same quarter a year ago, revenue and free cash flow were lower, operating cash flow was stable, and the free cash flow margin was weaker.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.3B
Cash generated by operations before capital spending.
CapEx
$92.0M
Capital spending and related asset purchases.
FCF margin
54.4%
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 | $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% |
| 2025-12-31 | $5.8B | $3.3B | $92.0M | $3.2B | 54.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 284.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$21.2B | 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 Strength
Operating cash flow rose sequentially despite lower revenue, indicating improved cash conversion from revenue. This was the strongest observable driver of the sequential free cash flow improvement.
Higher operating cash flow relative to revenue supported a sequential increase in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the prior quarter but unchanged from a year ago, while capital expenditure rose compared to both periods, resulting in free cash flow that was higher sequentially but lower year over year. The free cash flow margin strengthened from the preceding quarter but weakened relative to the same quarter last year.
Compared to the prior quarter, revenue was lower but operating cash flow and free cash flow were higher, with a stronger free cash flow margin. Versus the same quarter a year ago, revenue and free cash flow were lower, operating cash flow was stable, and the free cash flow margin was weaker.
Monitor capital expenditure trends, as spending increased from both the prior quarter and the year-ago period, reducing the proportion of operating cash flow converted into free cash flow.