Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased sharply from both the prior quarter and the same quarter last year, driven by lower operating cash flow. The cash conversion margin narrowed significantly, reflecting a weaker cash generation profile in the current quarter.
- Revenue continued to increase, but operating cash flow declined, causing free cash flow to fall and the free cash flow margin to contract. Capital expenditure was stable in absolute terms, so the drop in free cash flow was almost entirely attributable to lower operating cash conversion.
- Compared to the previous quarter, operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, the declines were much more pronounced, with operating cash flow and free cash flow substantially lower while revenue was higher, pointing to a significant weakening in cash conversion efficiency.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$17.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.9B
Cash generated by operations before capital spending.
CapEx
$890.0M
Capital spending and related asset purchases.
FCF margin
4.5%
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 | $100.8B | $2.4B | $912.0M | $1.5B | 1.4% |
| 2025-03-31 | $109.6B | $5.5B | $898.0M | $4.6B | 4.2% |
| 2025-06-30 | $111.6B | $7.2B | $886.0M | $6.3B | 5.6% |
| 2025-09-30 | $113.2B | $5.9B | $890.0M | $5.1B | 4.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 215.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$52.9B | 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 Decline
Operating cash flow fell sequentially and was sharply lower year over year, despite revenue growth. This was the strongest observable driver of the reduced free cash flow.
The lower operating cash flow directly compressed free cash flow and the free cash flow margin to their lowest levels in the periods presented.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue continued to increase, but operating cash flow declined, causing free cash flow to fall and the free cash flow margin to contract. Capital expenditure was stable in absolute terms, so the drop in free cash flow was almost entirely attributable to lower operating cash conversion.
Compared to the previous quarter, operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, the declines were much more pronounced, with operating cash flow and free cash flow substantially lower while revenue was higher, pointing to a significant weakening in cash conversion efficiency.
Monitor the trajectory of operating cash flow relative to revenue, as the divergence between them widened notably this quarter.