Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the final quarter of the fiscal year, free cash flow and margin declined from the prior quarter despite higher revenue, primarily due to lower operating cash flow and increased capital expenditure. Compared to the same quarter last year, both revenue and free cash flow have improved.
- Revenue increased while operating cash flow decreased from the previous quarter, resulting in a lower free cash flow margin. The margin also declined sequentially but remained higher than the year-ago period.
- Compared to the prior quarter, operating cash flow and free cash flow were lower, while capital expenditure was higher. Year over year, all metrics improved, with free cash flow margin rising.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.1B
Cash generated by operations before capital spending.
CapEx
$239.3M
Capital spending and related asset purchases.
FCF margin
15.5%
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 | $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% |
| 2025-12-31 | $12.1B | $2.1B | $239.3M | $1.9B | 15.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 77.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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.
Operating Cash Flow Decline
Operating cash flow declined sequentially despite revenue growth, indicating a lower cash conversion rate. This was the primary factor behind the weaker free cash flow and margin.
Lower operating cash flow reduced free cash flow compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow decreased from the previous quarter, resulting in a lower free cash flow margin. The margin also declined sequentially but remained higher than the year-ago period.
Compared to the prior quarter, operating cash flow and free cash flow were lower, while capital expenditure was higher. Year over year, all metrics improved, with free cash flow margin rising.
Monitor capital expenditure levels, as they increased sequentially and year over year.