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, while free cash flow margin strengthened. Versus the same quarter last year, revenue was higher but free cash flow margin was slightly lower.
- Operating cash flow exceeded capital expenditure by a wide margin, resulting in strong free cash flow. The free cash flow margin improved from the prior quarter, reflecting a higher conversion of revenue into free cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher, operating cash flow was stable, and free cash flow margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$194.0M
Capital spending and related asset purchases.
FCF margin
25.2%
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 | $7.8B | $1.2B | $196.0M | $964.0M | 12.4% |
| 2025-06-30 | $8.3B | $898.0M | $206.0M | $692.0M | 8.3% |
| 2025-09-30 | $8.4B | $2.0B | $256.0M | $1.7B | 20.4% |
| 2025-12-31 | $8.7B | $2.4B | $194.0M | $2.2B | 25.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 152.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | 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 from the prior quarter, supporting a higher free cash flow despite a lower capital expenditure. This was the strongest observable driver of the quarter's cash generation.
The improvement in operating cash flow directly lifted free cash flow and margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure by a wide margin, resulting in strong free cash flow. The free cash flow margin improved from the prior quarter, reflecting a higher conversion of revenue into free cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher, operating cash flow was stable, and free cash flow margin was slightly lower.
Monitor the trend in free cash flow margin, which weakened relative to the same quarter last year despite higher revenue.