Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter, leading to a positive free cash flow margin. However, free cash flow was lower than the same quarter one year earlier.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow and a free cash flow margin that was higher than the prior quarter but lower than the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved. Compared to the same quarter one year earlier, revenue and free cash flow were lower, while operating cash flow was also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.6B
Cash generated by operations before capital spending.
CapEx
$602.0M
Capital spending and related asset purchases.
FCF margin
24.0%
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 | $17.8B | $6.7B | $917.0M | $5.8B | 32.7% |
| 2025-03-30 | $13.7B | $2.3B | $564.0M | $1.8B | 12.9% |
| 2025-06-29 | $14.7B | -$582.0M | $618.0M | -$1.2B | -8.2% |
| 2025-09-28 | $16.7B | $4.6B | $602.0M | $4.0B | 24.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 113.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$60.4B | 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 Recovery
Operating cash flow turned positive this quarter after being negative in the prior quarter, which was the strongest observable driver of the improvement in free cash flow.
This recovery directly enabled the shift from a negative to a positive free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow and a free cash flow margin that was higher than the prior quarter but lower than the year-ago quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved. Compared to the same quarter one year earlier, revenue and free cash flow were lower, while operating cash flow was also lower.
Monitor the trend in operating cash flow relative to revenue, as it shifted from negative to positive sequentially but remained below the year-ago level.