Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter last year. The free cash flow margin strengthened significantly versus both periods.
- Operating cash flow as a share of revenue was higher than the prior quarter and the year-ago quarter, driving a higher free cash flow margin. Capital expenditure was lower than the year-ago quarter but higher than the prior quarter, yet free cash flow still increased.
- 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 last year, all metrics were higher, with operating cash flow and free cash flow showing stronger improvement than revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.0B
Cash generated by operations before capital spending.
CapEx
$516.0M
Capital spending and related asset purchases.
FCF margin
25.5%
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 | $8.5B | $660.0M | $398.0M | $262.0M | 3.1% |
| 2025-06-30 | $8.5B | $1.1B | $371.0M | $771.0M | 9.0% |
| 2025-09-30 | $8.9B | $1.7B | $409.0M | $1.3B | 14.3% |
| 2025-12-31 | $9.7B | $3.0B | $516.0M | $2.5B | 25.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 302.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.3% | 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 was higher than both the prior quarter and the year-ago quarter, contributing to a higher free cash flow despite a moderate increase in capital expenditure.
The improvement in operating cash flow was the primary factor behind the higher free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was higher than the prior quarter and the year-ago quarter, driving a higher free cash flow margin. Capital expenditure was lower than the year-ago quarter but higher than the prior quarter, yet free cash flow still increased.
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 last year, all metrics were higher, with operating cash flow and free cash flow showing stronger improvement than revenue.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased from the prior quarter while operating cash flow also rose.