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 increased, while capital expenditure also rose. Free cash flow margin improved sequentially but was slightly lower than the same quarter last year.
- Operating cash flow rose relative to revenue, and free cash flow margin remained above a third of revenue, indicating strong cash conversion. Capital expenditure increased but was more than offset by the operating cash flow growth.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter a year earlier, revenue and operating cash flow were higher, but capital expenditure was higher, resulting in a slightly lower free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.0B
Cash generated by operations before capital spending.
CapEx
$549.0M
Capital spending and related asset purchases.
FCF margin
36.0%
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 |
|---|---|---|---|---|---|
| 2025-03-30 | $11.0B | $2.6B | $214.0M | $2.3B | 21.3% |
| 2025-06-29 | $10.4B | $2.9B | $294.0M | $2.6B | 24.9% |
| 2025-09-28 | $11.3B | $4.0B | $407.0M | $3.6B | 31.8% |
| 2025-12-28 | $12.3B | $5.0B | $549.0M | $4.4B | 36.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 147.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.6B | 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 increased compared to both the prior quarter and the year-ago quarter, supporting higher free cash flow despite increased capital spending.
The increase in operating cash flow was the primary factor behind the sequential improvement in 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 rose relative to revenue, and free cash flow margin remained above a third of revenue, indicating strong cash conversion. Capital expenditure increased but was more than offset by the operating cash flow growth.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter a year earlier, revenue and operating cash flow were higher, but capital expenditure was higher, resulting in a slightly lower free cash flow margin.
Monitor the impact of the Alphawave acquisition on cash and cash equivalents and future capital allocation, as disclosed in the filing.