Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive sharply from near breakeven levels in the prior and year-ago quarters, as operating cash flow expansion significantly outpaced capital expenditure. The free cash flow margin moved from negligible to a solid positive rate, reflecting a material shift in cash conversion efficiency.
- Revenue rose while operating cash flow improved at a faster pace than capital expenditure, resulting in free cash flow turning positive with a notable margin. The conversion of revenue into operating cash flow strengthened, and the gap between operating cash flow and capital spending widened favorably.
- Compared with both the immediately preceding quarter and the same quarter one year earlier, free cash flow and free cash flow margin improved from near-zero levels to a positive outcome. Operating cash flow was higher in both comparisons, while capital expenditure was lower versus the prior quarter but higher than the year-ago period.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$8.4B
Cash generated by operations before capital spending.
CapEx
$5.4B
Capital spending and related asset purchases.
FCF margin
22.2%
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 |
|---|---|---|---|---|---|
| 2025-02-27 | $8.1B | $3.9B | $4.1B | -$113.0M | -1.4% |
| 2025-05-29 | $9.3B | $4.6B | $2.9B | $1.7B | 18.0% |
| 2025-08-28 | $11.3B | $5.7B | $5.7B | $72.0M | 0.6% |
| 2025-11-27 | $13.6B | $8.4B | $5.4B | $3.0B | 22.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 57.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 39.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $887.0M | 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 Expansion
The increase in operating cash flow was the strongest observable driver, outpacing the change in both revenue and capital expenditure. This allowed free cash flow to shift from minimal levels in prior periods to a meaningful positive result.
This driver turned free cash flow positive and established a healthy cash conversion margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow improved at a faster pace than capital expenditure, resulting in free cash flow turning positive with a notable margin. The conversion of revenue into operating cash flow strengthened, and the gap between operating cash flow and capital spending widened favorably.
Compared with both the immediately preceding quarter and the same quarter one year earlier, free cash flow and free cash flow margin improved from near-zero levels to a positive outcome. Operating cash flow was higher in both comparisons, while capital expenditure was lower versus the prior quarter but higher than the year-ago period.
Monitor whether operating cash flow can sustain its elevated pace relative to capital expenditure in future periods.