Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly from both the prior quarter and the same quarter last year, driven by higher operating cash flow. Revenue was stable sequentially and higher year over year, while capital expenditure was lower year over year.
- Operating cash flow rose substantially from the prior quarter and was higher than a year ago, leading to a stronger free cash flow margin. Capital expenditure was lower than the year-ago level but higher than the prior quarter, yet the increase in operating cash flow more than offset the higher spending.
- Compared to the prior quarter, free cash flow and its margin improved markedly, with operating cash flow rising while revenue was stable. Versus the same quarter last year, free cash flow and margin were also higher, supported by stronger operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$301.0M
Capital spending and related asset purchases.
FCF margin
12.1%
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 | $10.7B | $2.6B | $816.0M | $1.8B | 16.5% |
| 2025-03-31 | $9.5B | -$1.6B | $256.0M | -$1.8B | -19.2% |
| 2025-06-30 | $10.4B | $868.0M | $231.0M | $637.0M | 6.2% |
| 2025-09-30 | $10.4B | $1.6B | $301.0M | $1.3B | 12.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 114.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.7B | 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 was the strongest observable driver, rising substantially from both the prior quarter and the year-ago quarter. This directly lifted free cash flow and its margin despite a moderate increase in capital expenditure from the prior quarter.
The improvement in operating cash flow was the primary factor behind the higher free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose substantially from the prior quarter and was higher than a year ago, leading to a stronger free cash flow margin. Capital expenditure was lower than the year-ago level but higher than the prior quarter, yet the increase in operating cash flow more than offset the higher spending.
Compared to the prior quarter, free cash flow and its margin improved markedly, with operating cash flow rising while revenue was stable. Versus the same quarter last year, free cash flow and margin were also higher, supported by stronger operating cash flow and lower capital expenditure.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future periods.