Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, supported by a significant improvement in operating cash flow compared to the prior quarter. Revenue was stable, while capital expenditure decreased, contributing to a higher free cash flow margin.
- Operating cash flow was substantially higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin improved markedly from the prior quarter and was also higher than the same quarter last year, indicating stronger cash conversion efficiency.
- Compared to the immediately preceding quarter, free cash flow turned from negative to positive, driven by a much higher operating cash flow and a lower capital expenditure. Versus the same quarter one year earlier, free cash flow and free cash flow margin were both higher, while revenue was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$970.0M
Capital spending and related asset purchases.
FCF margin
7.1%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $25.3B | $3.3B | $1.1B | $2.2B | 8.8% |
| 2025-03-31 | $21.5B | $2.3B | $876.0M | $1.4B | 6.7% |
| 2025-06-30 | $21.2B | $348.0M | $1.1B | -$775.0M | -3.7% |
| 2025-09-30 | $21.4B | $2.5B | $970.0M | $1.5B | 7.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 115.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Recovery
Operating cash flow increased substantially from the prior quarter, reversing a prior shortfall and enabling positive free cash flow. This improvement was the strongest observable driver of the quarter's cash conversion.
The higher operating cash flow directly lifted free cash flow and margin, despite a slight decline in revenue compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin improved markedly from the prior quarter and was also higher than the same quarter last year, indicating stronger cash conversion efficiency.
Compared to the immediately preceding quarter, free cash flow turned from negative to positive, driven by a much higher operating cash flow and a lower capital expenditure. Versus the same quarter one year earlier, free cash flow and free cash flow margin were both higher, while revenue was slightly lower.
Monitor whether operating cash flow can sustain its current level, as it was the primary driver of the positive free cash flow this quarter.