Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was unchanged from the prior quarter and higher than a year ago, but operating cash flow fell sharply, compressing free cash flow to a minimal level. The free cash flow margin weakened significantly compared with both the preceding quarter and the same quarter last year.
- Revenue remained stable relative to the prior quarter, while operating cash flow dropped substantially, causing free cash flow to contract despite a modest increase in capital expenditure. The free cash flow margin declined to a very low level, reflecting weaker cash conversion.
- Compared with the prior quarter, revenue was unchanged but operating cash flow and free cash flow were both lower, and free cash flow margin weakened. Versus the same quarter a year ago, revenue was higher, yet operating cash flow and free cash flow were lower, with a weaker margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$16.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$160.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$948.0M
Capital spending and related asset purchases.
FCF margin
0.1%
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 | $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% |
| 2025-12-31 | $113.2B | $1.1B | $948.0M | $160.0M | 0.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1600.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$54.0B | 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 contraction
Operating cash flow was substantially lower than the prior quarter and the year-ago quarter, while revenue remained stable or increased. This change was the primary observable factor behind the reduction in free cash flow.
Free cash flow fell to a minimal level, producing a very low free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable relative to the prior quarter, while operating cash flow dropped substantially, causing free cash flow to contract despite a modest increase in capital expenditure. The free cash flow margin declined to a very low level, reflecting weaker cash conversion.
Compared with the prior quarter, revenue was unchanged but operating cash flow and free cash flow were both lower, and free cash flow margin weakened. Versus the same quarter a year ago, revenue was higher, yet operating cash flow and free cash flow were lower, with a weaker margin.
Monitor the level of operating cash flow given its significant variation from the prior quarter.