Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned strongly positive from the prior quarter's negative level, driving a large free cash flow and a high margin. Revenue increased compared to both the prior quarter and the same quarter last year.
- Revenue rose while operating cash flow shifted from negative to positive, resulting in a large free cash flow and a free cash flow margin that remained elevated. Capital expenditure was lower than the prior quarter but higher than a year ago.
- Compared to the prior quarter, operating cash flow and free cash flow improved from negative to positive, and revenue was higher. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, while the free cash flow margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$7.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$7.3B
Cash generated by operations before capital spending.
CapEx
$140.0M
Capital spending and related asset purchases.
FCF margin
111.1%
The share of revenue converted into free cash flow.
TTM FCF yield
5.4%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-06-30 | $5.9B | $3.2B | $128.0M | $3.0B | 52.1% |
| 2025-09-30 | $6.1B | $538.0M | $145.0M | $393.0M | 6.4% |
| 2025-12-31 | $6.3B | -$763.0M | $212.0M | -$975.0M | -15.4% |
| 2026-03-31 | $6.5B | $7.3B | $140.0M | $7.2B | 111.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 290.5% | 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 Reversal
Operating cash flow shifted from a negative amount in the prior quarter to a large positive amount this quarter, which was the strongest observable driver of free cash flow improvement.
This reversal directly enabled the large positive free cash flow and high margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow shifted from negative to positive, resulting in a large free cash flow and a free cash flow margin that remained elevated. Capital expenditure was lower than the prior quarter but higher than a year ago.
Compared to the prior quarter, operating cash flow and free cash flow improved from negative to positive, and revenue was higher. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, while the free cash flow margin was slightly lower.
Monitor whether operating cash flow can sustain its positive level after the prior quarter's negative swing.
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 | $178.8B | Used as the denominator for FCF yield. |
| TTM FCF yield | 5.4% | 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.