Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was lower than both the prior quarter and the same quarter last year, driven by a weaker operating cash flow conversion. The free cash flow margin contracted compared to both periods.
- Revenue was lower sequentially but higher than a year ago. Operating cash flow decreased from both the prior quarter and the year-ago quarter. Capital expenditure was slightly higher than the prior quarter but lower than the year-ago period. Free cash flow and free cash flow margin declined compared with both periods.
- Compared with the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared with the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.8B
Cash generated by operations before capital spending.
CapEx
$2.4B
Capital spending and related asset purchases.
FCF margin
5.7%
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 | $19.3B | $2.2B | $1.5B | $664.0M | 3.4% |
| 2025-06-30 | $22.5B | $2.5B | $2.4B | $146.0M | 0.6% |
| 2025-09-30 | $28.1B | $6.2B | $2.2B | $4.0B | 14.2% |
| 2025-12-31 | $24.9B | $3.8B | $2.4B | $1.4B | 5.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 169.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | $9.9B | 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 Weakening
Operating cash flow was lower than both prior periods, and the gap between revenue and operating cash flow widened. This was the principal observable factor behind the decline in free cash flow and free cash flow margin.
The lower operating cash flow directly reduced free cash flow despite a modest change in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower sequentially but higher than a year ago. Operating cash flow decreased from both the prior quarter and the year-ago quarter. Capital expenditure was slightly higher than the prior quarter but lower than the year-ago period. Free cash flow and free cash flow margin declined compared with both periods.
Compared with the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared with the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower.
Monitor operating cash flow relative to revenue, as it was the strongest observable driver of the lower free cash flow margin.