Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow increased sequentially and year-over-year. The free cash flow margin improved versus the prior quarter and was stable compared to the same quarter last year.
- With revenue higher, operating cash flow converted into free cash flow after capital expenditure, producing a free cash flow margin that improved sequentially and was relatively stable year-over-year. The relationship among revenue, operating cash flow, capital expenditure, and free cash flow indicates efficient cash conversion in the quarter.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, while the free cash flow margin was stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.8B
Cash generated by operations before capital spending.
CapEx
$164.7M
Capital spending and related asset purchases.
FCF margin
23.1%
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 | $10.2B | $1.5B | $158.7M | $1.4B | 13.5% |
| 2025-03-31 | $10.5B | $2.8B | $128.3M | $2.7B | 25.2% |
| 2025-06-30 | $11.1B | $2.4B | $155.9M | $2.3B | 20.5% |
| 2025-09-30 | $11.5B | $2.8B | $164.7M | $2.7B | 23.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 104.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | 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.
Improved Sequential Free Cash Flow Conversion
The sequential increase in free cash flow exceeded the sequential increase in revenue, and the free cash flow margin improved. This occurred while operating cash flow grew and capital expenditure was only slightly higher.
Stronger free cash flow generation compared to the prior quarter, with a higher margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue higher, operating cash flow converted into free cash flow after capital expenditure, producing a free cash flow margin that improved sequentially and was relatively stable year-over-year. The relationship among revenue, operating cash flow, capital expenditure, and free cash flow indicates efficient cash conversion in the quarter.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, while the free cash flow margin was stable.
Free cash flow conversion relative to revenue, given that capital expenditure was higher both sequentially and year-over-year.