Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared with both the prior quarter and the year-ago quarter. Operating cash flow strengthened significantly, leading to a substantial improvement in free cash flow and free cash flow margin.
- Operating cash flow rose sharply, while capital expenditure increased only modestly. As a result, free cash flow turned positive from a negative level in the prior quarter and improved on a year-over-year basis.
- The free cash flow margin improved markedly from both the preceding quarter and the same period one year earlier. Revenue growth and a higher proportion of operating cash flow conversion were the key observable changes.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.6B
Cash generated by operations before capital spending.
CapEx
$614.0M
Capital spending and related asset purchases.
FCF margin
17.9%
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 | $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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 209.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | 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 Surge
Operating cash flow increased sharply versus the prior quarter and the year-ago period, far outpacing the rise in revenue. This was the strongest observable driver of free cash flow improvement.
The strengthened cash generation provides greater financial flexibility for the company.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose sharply, while capital expenditure increased only modestly. As a result, free cash flow turned positive from a negative level in the prior quarter and improved on a year-over-year basis.
The free cash flow margin improved markedly from both the preceding quarter and the same period one year earlier. Revenue growth and a higher proportion of operating cash flow conversion were the key observable changes.
Monitor the trajectory of operating cash flow to see if the current level is sustained.