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 compared to the prior quarter and the same quarter last year. Free cash flow margin improved sequentially but was lower than the year-ago period.
- Operating cash flow exceeded capital expenditure by a wide margin, resulting in free cash flow that closely tracked operating cash flow. The free cash flow margin was supported by the relationship between revenue and operating cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue and operating cash flow were higher, but the free cash flow margin was lower due to a larger increase in capital expenditure relative to operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$45.0M
Capital spending and related asset purchases.
FCF margin
37.6%
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 | $3.6B | $1.7B | $33.0M | $1.7B | 47.5% |
| 2025-03-31 | $3.8B | $953.0M | $43.0M | $910.0M | 24.1% |
| 2025-06-30 | $3.8B | $1.4B | $61.0M | $1.4B | 36.9% |
| 2025-09-30 | $3.9B | $1.5B | $45.0M | $1.5B | 37.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 124.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.7B | 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 from both the prior quarter and the year-ago quarter, supporting higher free cash flow. This was the strongest observable driver of the quarter's cash generation.
Higher operating cash flow directly lifted free cash flow despite a moderate increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure by a wide margin, resulting in free cash flow that closely tracked operating cash flow. The free cash flow margin was supported by the relationship between revenue and operating cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue and operating cash flow were higher, but the free cash flow margin was lower due to a larger increase in capital expenditure relative to operating cash flow.
Monitor the trend in capital expenditure relative to operating cash flow, as a higher ratio this quarter compared to last year contributed to a lower free cash flow margin.