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 improved from the prior quarter, but free cash flow turned more negative as capital expenditure rose sharply. Compared to the same quarter last year, operating cash flow and free cash flow weakened significantly despite higher revenue.
- Operating cash flow as a share of revenue was lower than the prior quarter and much lower than the same quarter last year, while capital expenditure exceeded operating cash flow, resulting in a negative free cash flow margin.
- Compared to the prior quarter, revenue and operating cash flow were higher, but capital expenditure increased more, causing free cash flow to be more negative. Versus the same quarter last year, revenue was higher, yet operating cash flow was lower and capital expenditure was higher, flipping free cash flow from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$604.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$1.9B
Capital spending and related asset purchases.
FCF margin
-3.9%
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 | $13.2B | $3.7B | $1.2B | $2.5B | 18.7% |
| 2025-06-30 | $15.2B | $2.2B | $1.3B | $930.0M | 6.1% |
| 2025-09-30 | $15.2B | $1.2B | $1.5B | -$246.0M | -1.6% |
| 2025-12-31 | $15.4B | $1.3B | $1.9B | -$604.0M | -3.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -57.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$15.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital expenditure increase
Capital expenditure rose from the prior quarter and from the same quarter last year, outpacing the growth in operating cash flow and contributing to the negative free cash flow.
The higher capital expenditure was the strongest observable driver of the weakened free cash flow this quarter.
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 lower than the prior quarter and much lower than the same quarter last year, while capital expenditure exceeded operating cash flow, resulting in a negative free cash flow margin.
Compared to the prior quarter, revenue and operating cash flow were higher, but capital expenditure increased more, causing free cash flow to be more negative. Versus the same quarter last year, revenue was higher, yet operating cash flow was lower and capital expenditure was higher, flipping free cash flow from positive to negative.
Monitor the trend in capital expenditure relative to operating cash flow, as the gap widened materially this quarter.