Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter last year, driven by higher operating cash flow and a stable capital expenditure level. However, free cash flow and its margin weakened sequentially from the prior quarter, reflecting lower operating cash flow.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow decreased sequentially, leading to a lower free cash flow and a weakened free cash flow margin compared to the prior quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$546.0M
Capital spending and related asset purchases.
FCF margin
5.9%
The share of revenue converted into free cash flow.
TTM FCF yield
3.2%
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | $1.9B | Cash generated by operations before capital spending. |
| Capital expenditures | $546.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $1.3B | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $18.3B | $719.0M | $526.0M | $193.0M | 1.1% |
| 2023-09-30 | $13.5B | $3.3B | $564.0M | $2.8B | 20.4% |
| 2023-12-31 | $19.9B | $4.7B | $805.0M | $3.9B | 19.6% |
| 2024-03-31 | $19.3B | $342.0M | $467.0M | -$125.0M | -0.6% |
| 2024-06-30 | $19.7B | $2.7B | $537.0M | $2.2B | 11.1% |
| 2024-09-30 | $20.1B | $2.5B | $552.0M | $2.0B | 9.8% |
| 2024-12-31 | $21.6B | $1.6B | $1.1B | $492.0M | 2.3% |
| 2025-03-31 | $20.3B | $1.3B | $513.0M | $792.0M | 3.9% |
| 2025-06-30 | $21.6B | $458.0M | $530.0M | -$72.0M | -0.3% |
| 2025-09-30 | $22.5B | $4.6B | $614.0M | $4.0B | 17.9% |
| 2025-12-31 | $24.2B | $4.2B | $970.0M | $3.2B | 13.2% |
| 2026-03-31 | $22.1B | $1.9B | $546.0M | $1.3B | 5.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 63.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | 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.
Year-over-Year Operating Cash Flow Improvement
Operating cash flow was higher than the same quarter last year, which supported a higher free cash flow and an improved free cash flow margin compared to the year-ago period.
This year-over-year increase in operating cash flow was the strongest observable driver of the improved free cash flow generation relative to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow decreased sequentially, leading to a lower free cash flow and a weakened free cash flow margin compared to the prior quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was slightly higher.
Monitor the trajectory of operating cash flow, as its sequential decline was the primary factor behind the weakened free cash flow margin.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $263.8B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.2% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |