Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened compared to both the prior quarter and the same quarter last year, as capital expenditure rose while operating cash flow declined. The free cash flow margin contracted, reflecting a lower proportion of revenue converted to free cash.
- Revenue increased from the prior quarter and from a year ago, but operating cash flow was lower than both periods, indicating a weaker cash conversion rate. Capital expenditure was higher than both comparison periods, further reducing free cash flow and margin.
- Compared to the prior quarter, free cash flow and margin were lower despite higher revenue, driven by a decline in operating cash flow and an increase in capital expenditure. Versus the same quarter last year, free cash flow and margin were also lower, with operating cash flow down and capital expenditure significantly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$576.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$970.0M
Capital spending and related asset purchases.
FCF margin
6.4%
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 | $8.0B | $904.0M | $629.0M | $275.0M | 3.4% |
| 2025-06-30 | $7.9B | $1.5B | $749.0M | $776.0M | 9.8% |
| 2025-09-30 | $8.6B | $1.6B | $804.0M | $820.0M | 9.5% |
| 2025-12-31 | $9.1B | $1.5B | $970.0M | $576.0M | 6.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 59.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$31.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure rose to nearly one billion dollars, higher than both the prior quarter and the year-ago quarter, while operating cash flow declined. This combination was the strongest observable factor behind the lower free cash flow.
Higher capital spending absorbed a larger share of operating cash flow, reducing free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter and from a year ago, but operating cash flow was lower than both periods, indicating a weaker cash conversion rate. Capital expenditure was higher than both comparison periods, further reducing free cash flow and margin.
Compared to the prior quarter, free cash flow and margin were lower despite higher revenue, driven by a decline in operating cash flow and an increase in capital expenditure. Versus the same quarter last year, free cash flow and margin were also lower, with operating cash flow down and capital expenditure significantly higher.
Monitor the trend in capital expenditure relative to operating cash flow, as the gap widened this quarter and compressed free cash flow.