Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the same quarter last year, driven by higher revenue and stronger operating cash flow. The free cash flow margin expanded significantly, reflecting a larger proportion of revenue converted into free cash flow.
- Revenue increased while operating cash flow rose at a faster pace, leading to a higher free cash flow margin. Capital expenditure was moderately higher than the prior quarter but lower than a year ago, supporting the conversion of operating cash flow into free cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin improving from the prior level. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow and its margin were both higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.6B
Cash generated by operations before capital spending.
CapEx
$808.0M
Capital spending and related asset purchases.
FCF margin
41.3%
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 | $5.0B | $2.0B | $826.0M | $1.2B | 24.1% |
| 2025-06-30 | $5.3B | $2.4B | $674.0M | $1.7B | 32.2% |
| 2025-09-30 | $5.5B | $2.3B | $727.0M | $1.6B | 28.4% |
| 2025-12-31 | $6.8B | $3.6B | $808.0M | $2.8B | 41.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 216.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | $2.5B | 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 increased substantially from both the prior quarter and the year-ago quarter, outpacing revenue growth and driving free cash flow higher.
This was the strongest observable driver of the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow rose at a faster pace, leading to a higher free cash flow margin. Capital expenditure was moderately higher than the prior quarter but lower than a year ago, supporting the conversion of operating cash flow into free cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin improving from the prior level. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow and its margin were both higher.
Monitor the trend in capital expenditure relative to operating cash flow, as a sustained increase could pressure free cash flow conversion.