Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was positive and the margin was high, supported by operating cash flow that exceeded capital expenditure. Revenue was lower than the prior quarter and the year-ago quarter.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow and a high free cash flow margin. The margin improved compared to the prior quarter but weakened versus the year-ago quarter.
- Compared to the prior quarter, revenue was lower, operating cash flow was slightly lower, capital expenditure was lower, and free cash flow was higher with an improved margin. Versus the year-ago quarter, revenue was lower, operating cash flow was lower, capital expenditure was lower, 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
$4.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.6B
Cash generated by operations before capital spending.
CapEx
$753.0M
Capital spending and related asset purchases.
FCF margin
113.4%
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 | $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% |
| 2025-12-31 | $1.7B | $2.6B | $753.0M | $1.9B | 113.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1650.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 45.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$19.4B | 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 was lower than both the prior quarter and the year-ago quarter, which supported free cash flow despite lower operating cash flow.
Lower capital expenditure was the strongest observable driver of free cash flow improvement versus the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, resulting in positive free cash flow and a high free cash flow margin. The margin improved compared to the prior quarter but weakened versus the year-ago quarter.
Compared to the prior quarter, revenue was lower, operating cash flow was slightly lower, capital expenditure was lower, and free cash flow was higher with an improved margin. Versus the year-ago quarter, revenue was lower, operating cash flow was lower, capital expenditure was lower, and free cash flow was lower with a weakened margin.
Monitor the trend in operating cash flow, which decreased from both the prior quarter and the year-ago quarter.