Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the prior quarter but was lower than the same quarter last year. Free cash flow improved sequentially due to a larger reduction in capital expenditure than the decline in operating cash flow, though it remained below the year-ago level.
- Operating cash flow as a proportion of revenue was lower than both the preceding quarter and the year-ago quarter. Capital expenditure as a share of revenue decreased from the prior quarter but increased compared to the same period last year, resulting in a free cash flow margin that improved sequentially but weakened year over year.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow was lower, capital expenditure was lower, and free cash flow was higher with an improved margin. Compared to the same quarter one year earlier, revenue was lower, operating cash flow was lower, capital expenditure was slightly higher, and free cash flow was lower with a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.8B
Cash generated by operations before capital spending.
CapEx
$1.8B
Capital spending and related asset purchases.
FCF margin
15.3%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $2.2B | $3.4B | $1.0B | $2.3B | 108.0% |
| 2025-03-31 | $5.8B | $2.1B | $1.7B | $466.0M | 8.0% |
| 2025-06-30 | $6.3B | $3.0B | $2.2B | $736.0M | 11.6% |
| 2025-09-30 | $6.7B | $2.8B | $1.8B | $1.0B | 15.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 121.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 26.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$19.5B | 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 reduction
Capital expenditure decreased from the prior quarter, which was the primary factor behind the sequential improvement in free cash flow.
The reduction in capital spending helped offset the decline in operating cash flow, allowing free cash flow to increase.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than both the preceding quarter and the year-ago quarter. Capital expenditure as a share of revenue decreased from the prior quarter but increased compared to the same period last year, resulting in a free cash flow margin that improved sequentially but weakened year over year.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow was lower, capital expenditure was lower, and free cash flow was higher with an improved margin. Compared to the same quarter one year earlier, revenue was lower, operating cash flow was lower, capital expenditure was slightly higher, and free cash flow was lower with a weakened margin.
Monitor the trend in operating cash flow relative to revenue, as it declined both sequentially and year over year.