Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow margin improved compared with both the prior quarter and the year-ago quarter.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin was higher than the revenue-based margin, indicating efficient cash conversion relative to sales.
- Compared with the prior quarter, revenue was lower while operating cash flow and free cash flow were higher, leading to an improved free cash flow margin. Compared with the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, with a higher free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.7B
Cash generated by operations before capital spending.
CapEx
$444.0M
Capital spending and related asset purchases.
FCF margin
41.2%
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 | $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% |
| 2025-12-31 | $10.4B | $4.7B | $444.0M | $4.3B | 41.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 199.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | 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 Strength
Operating cash flow increased compared with both the prior quarter and the year-ago quarter, despite a sequential decline in revenue. This was the strongest observable driver of free cash flow improvement.
Higher operating cash flow directly supported a higher free cash flow and an improved 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. The free cash flow margin was higher than the revenue-based margin, indicating efficient cash conversion relative to sales.
Compared with the prior quarter, revenue was lower while operating cash flow and free cash flow were higher, leading to an improved free cash flow margin. Compared with the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, with a higher free cash flow margin.
Monitor the trend in capital expenditure, which was higher than both the prior quarter and the year-ago quarter.