Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved significantly both sequentially and compared to the same quarter a year earlier. Operating cash flow exceeded revenue, resulting in a free cash flow margin well above one hundred percent.
- Revenue was lower than operating cash flow, which after deducting capital expenditure produced a large positive free cash flow. The free cash flow margin was elevated because operating cash flow substantially exceeded revenue.
- Compared to the prior quarter, operating cash flow and free cash flow were higher, and the free cash flow margin improved. Relative to the same quarter one year earlier, the company moved from negative operating and free cash flow to strongly positive figures.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$9.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$10.0B
Cash generated by operations before capital spending.
CapEx
$267.0M
Capital spending and related asset purchases.
FCF margin
266.6%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $3.3B | $2.4B | $226.0M | $2.2B | 66.1% |
| 2025-06-30 | $3.4B | -$8.4B | $319.0M | -$8.8B | -254.1% |
| 2025-09-30 | $3.5B | $7.9B | $243.0M | $7.7B | 216.0% |
| 2025-12-31 | $3.7B | $10.0B | $267.0M | $9.8B | 266.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1308.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.3% | 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 the primary driver, exceeding revenue by a wide margin and generating substantial free cash flow after modest capital expenditure.
This allowed the company to report a free cash flow margin that was significantly higher than the prior quarter and a sharp reversal from the negative margin a year earlier.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than operating cash flow, which after deducting capital expenditure produced a large positive free cash flow. The free cash flow margin was elevated because operating cash flow substantially exceeded revenue.
Compared to the prior quarter, operating cash flow and free cash flow were higher, and the free cash flow margin improved. Relative to the same quarter one year earlier, the company moved from negative operating and free cash flow to strongly positive figures.
Monitor the gap between operating cash flow and revenue, as it remained unusually wide in the current quarter.