Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than the prior quarter but lower than the same quarter last year. Free cash flow improved year over year but weakened sequentially, with the margin narrowing from the prior quarter.
- Operating cash flow was stable versus the prior quarter and higher year over year. Capital expenditure increased both sequentially and annually, resulting in free cash flow that was lower than the prior quarter but higher than the year-ago period.
- Compared to the prior quarter, revenue was higher but free cash flow and margin were lower due to higher capital expenditure. Compared to the same quarter last year, revenue was lower while operating cash flow, free cash flow, and margin all improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.6B
Cash generated by operations before capital spending.
CapEx
$947.0M
Capital spending and related asset purchases.
FCF margin
4.8%
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 | $33.1B | $2.2B | $810.0M | $1.4B | 4.2% |
| 2025-03-31 | $31.5B | -$64.0M | $663.0M | -$727.0M | -2.3% |
| 2025-06-30 | $33.8B | $2.6B | $695.0M | $1.9B | 5.8% |
| 2025-09-30 | $34.8B | $2.6B | $947.0M | $1.7B | 4.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 121.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | 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 Strength
Operating cash flow was unchanged from the prior quarter and significantly higher than the same quarter last year, providing a stable base for free cash flow despite higher capital spending.
The year-over-year improvement in operating cash flow was the strongest observable driver, lifting free cash flow and margin compared to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was stable versus the prior quarter and higher year over year. Capital expenditure increased both sequentially and annually, resulting in free cash flow that was lower than the prior quarter but higher than the year-ago period.
Compared to the prior quarter, revenue was higher but free cash flow and margin were lower due to higher capital expenditure. Compared to the same quarter last year, revenue was lower while operating cash flow, free cash flow, and margin all improved.
Monitor the trend in capital expenditure, as it increased both sequentially and year over year, directly affecting free cash flow.