Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased versus both the prior quarter and the same quarter last year, supported by higher operating cash flow. The free cash flow margin improved compared to both periods.
- Revenue rose while operating cash flow increased more than proportionally, resulting in a higher free cash flow margin. Capital expenditure was slightly higher than the prior quarter but lower than the year-ago quarter, contributing to the improvement.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin strengthened. Versus the same quarter one year earlier, all metrics also improved, with operating cash flow and free cash flow both higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.5B
Cash generated by operations before capital spending.
CapEx
$365.0M
Capital spending and related asset purchases.
FCF margin
37.8%
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 | $9.7B | $4.0B | $278.0M | $3.7B | 38.4% |
| 2025-03-31 | $9.3B | -$350.0M | $404.0M | -$754.0M | -8.1% |
| 2025-06-30 | $10.1B | $3.4B | $356.0M | $3.1B | 30.1% |
| 2025-09-30 | $10.8B | $4.5B | $365.0M | $4.1B | 37.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 117.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | 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.
Operating Cash Flow Growth
Operating cash flow rose substantially from both the prior quarter and the year-ago quarter, driving the improvement in free cash flow and margin. This was the strongest observable factor, with revenue also increasing.
The higher operating cash flow directly increased free cash flow and improved the conversion from revenue to cash.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow increased more than proportionally, resulting in a higher free cash flow margin. Capital expenditure was slightly higher than the prior quarter but lower than the year-ago quarter, contributing to the improvement.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin strengthened. Versus the same quarter one year earlier, all metrics also improved, with operating cash flow and free cash flow both higher.
Monitor the company's ability to anticipate and respond to changes in adult consumer preferences, as discussed in the filing.