Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the same quarter last year but lower than the prior quarter. Operating cash flow and free cash flow declined versus both periods, leading to a weakened free cash flow margin.
- Operating cash flow as a proportion of revenue declined from the prior quarter and from the year-ago quarter, while capital expenditure increased. The resulting free cash flow margin was lower in both comparisons.
- Compared to the prior quarter, revenue was lower, operating cash flow was lower, capital expenditure was higher, and free cash flow was lower. Versus the same quarter last year, revenue was stable, operating cash flow was lower, capital expenditure was higher, and free cash flow was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$999.0M
Capital spending and related asset purchases.
FCF margin
20.1%
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 | $6.0B | $2.2B | $906.0M | $1.3B | 21.6% |
| 2025-06-30 | $6.2B | $2.3B | $936.0M | $1.4B | 22.7% |
| 2025-09-30 | $6.2B | $2.5B | $950.0M | $1.6B | 25.2% |
| 2025-12-31 | $6.1B | $2.2B | $999.0M | $1.2B | 20.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 66.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 16.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$30.5B | 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
The most observable driver of the weaker free cash flow was the decrease in operating cash flow, which fell in both sequential and year-over-year comparisons. Capital expenditure increased, further pressuring free cash flow.
The free cash flow margin weakened as a result, declining from the prior quarter and from the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue declined from the prior quarter and from the year-ago quarter, while capital expenditure increased. The resulting free cash flow margin was lower in both comparisons.
Compared to the prior quarter, revenue was lower, operating cash flow was lower, capital expenditure was higher, and free cash flow was lower. Versus the same quarter last year, revenue was stable, operating cash flow was lower, capital expenditure was higher, and free cash flow was lower.
Monitor the trajectory of operating cash flow, as it declined versus both the immediate prior quarter and the same period one year ago.