Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow margin improved from the prior quarter but was lower than the same quarter last year.
- Operating cash flow exceeded capital expenditure by a wide margin, resulting in positive free cash flow. The free cash flow margin improved compared to the prior quarter but weakened compared to the same quarter last year.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, leading to a stronger free cash flow margin. Compared to the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weaker margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$13.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$6.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$7.8B
Cash generated by operations before capital spending.
CapEx
$987.0M
Capital spending and related asset purchases.
FCF margin
39.6%
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 | $15.6B | $3.5B | $937.0M | $2.5B | 16.1% |
| 2025-03-31 | $15.5B | $2.5B | $1.3B | $1.2B | 7.5% |
| 2025-06-30 | $15.8B | $3.3B | $764.0M | $2.5B | 16.0% |
| 2025-09-30 | $17.3B | $7.8B | $987.0M | $6.8B | 39.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 118.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$23.2B | 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 improvement
Operating cash flow rose significantly from the prior quarter, outpacing the increase in capital expenditure, which boosted free cash flow.
The free cash flow margin improved as a result.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure by a wide margin, resulting in positive free cash flow. The free cash flow margin improved compared to the prior quarter but weakened compared to the same quarter last year.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, leading to a stronger free cash flow margin. Compared to the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weaker margin.
Monitor the impact of upfront and milestone payments on operating cash flow, as disclosed in the filing.