Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both increased from the prior quarter and from the same quarter last year. The free cash flow margin improved sequentially but was relatively stable compared to the year-ago period.
- Operating cash flow exceeded capital expenditure by a wide margin, resulting in positive free cash flow. The relationship between revenue and operating cash flow indicates a high rate of cash conversion, with free cash flow margin remaining in a healthy range.
- Compared with the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, leading to an improved free cash flow margin. Relative to the same quarter one year earlier, revenue and each cash flow metric were higher, while free cash flow margin was slightly lower but still at a similar level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$114.0M
Capital spending and related asset purchases.
FCF margin
33.8%
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 |
|---|---|---|---|---|---|
| 2025-03-29 | $2.5B | $510.0M | $37.0M | $473.0M | 18.7% |
| 2025-06-28 | $2.8B | $273.0M | $48.0M | $225.0M | 8.1% |
| 2025-09-27 | $3.0B | $798.0M | $66.0M | $732.0M | 24.3% |
| 2025-12-31 | $3.4B | $1.3B | $114.0M | $1.1B | 33.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 176.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Operating Cash Flow
Operating cash flow rose compared to both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow. This improvement occurred alongside higher revenue.
Higher operating cash flow drove free cash flow higher even as capital expenditure increased.
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 relationship between revenue and operating cash flow indicates a high rate of cash conversion, with free cash flow margin remaining in a healthy range.
Compared with the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, leading to an improved free cash flow margin. Relative to the same quarter one year earlier, revenue and each cash flow metric were higher, while free cash flow margin was slightly lower but still at a similar level.
Monitor the trend in capital expenditure relative to operating cash flow to assess whether the cash conversion rate remains stable.