Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was a small fraction of revenue, reflecting a low conversion rate. Operating cash flow covered capital expenditure, leaving a modest surplus.
- Revenue was stable compared to the prior quarter, while operating cash flow declined substantially, leading to a lower free cash flow margin. Capital expenditure was slightly lower than the previous quarter but higher than a year ago.
- Compared to the immediately preceding quarter, free cash flow and its margin weakened significantly. Versus the same quarter one year earlier, free cash flow and margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$149.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$978.0M
Capital spending and related asset purchases.
FCF margin
0.6%
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 |
|---|---|---|---|---|---|
| 2025-02-01 | $30.9B | $3.3B | $923.0M | $2.4B | 7.7% |
| 2025-05-03 | $23.8B | $275.0M | $790.0M | -$515.0M | -2.2% |
| 2025-08-02 | $25.2B | $2.1B | $1.1B | $1.0B | 4.0% |
| 2025-11-01 | $25.3B | $1.1B | $978.0M | $149.0M | 0.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 21.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | 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 Decline
Operating cash flow dropped sharply from the prior quarter, while capital expenditure remained relatively stable, causing a substantial reduction in free cash flow.
The decline in operating cash flow reduces the cushion for capital spending and shareholder returns.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter, while operating cash flow declined substantially, leading to a lower free cash flow margin. Capital expenditure was slightly lower than the previous quarter but higher than a year ago.
Compared to the immediately preceding quarter, free cash flow and its margin weakened significantly. Versus the same quarter one year earlier, free cash flow and margin improved.
Monitor the company's cash and cash equivalents balance, which decreased from the prior fiscal year-end.