Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the prior quarter but weakened compared to the same quarter last year. The cash conversion rate strengthened sequentially as operating cash flow rose more than capital expenditure.
- Revenue increased from both the prior quarter and the year-ago quarter, while operating cash flow rose from the prior quarter but fell from the year-ago quarter. Capital expenditure was lower than the year-ago quarter, contributing to a free cash flow margin that improved from the prior quarter but declined from the same quarter last year.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by a larger increase in operating cash flow relative to capital expenditure. Versus the same quarter one year earlier, free cash flow and free cash flow margin were lower, as operating cash flow declined while revenue was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.5B
Cash generated by operations before capital spending.
CapEx
$992.0M
Capital spending and related asset purchases.
FCF margin
14.5%
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 |
|---|---|---|---|---|---|
| 2024-09-07 | $23.3B | $4.9B | $1.1B | $3.8B | 16.1% |
| 2025-03-22 | $17.9B | -$973.0M | $603.0M | -$1.6B | -8.8% |
| 2025-06-14 | $22.7B | $2.0B | $904.0M | $1.1B | 4.7% |
| 2025-09-06 | $23.9B | $4.5B | $992.0M | $3.5B | 14.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 133.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | 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.
Sequential cash flow recovery
Operating cash flow increased from the prior quarter, and capital expenditure rose only modestly, resulting in a substantial improvement in free cash flow and free cash flow margin.
This sequential recovery strengthened the quarter's cash generation relative to the prior period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter, while operating cash flow rose from the prior quarter but fell from the year-ago quarter. Capital expenditure was lower than the year-ago quarter, contributing to a free cash flow margin that improved from the prior quarter but declined from the same quarter last year.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by a larger increase in operating cash flow relative to capital expenditure. Versus the same quarter one year earlier, free cash flow and free cash flow margin were lower, as operating cash flow declined while revenue was higher.
Monitor the trend in operating cash flow relative to revenue, as it declined year-over-year despite higher revenue.