Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved as free cash flow rose from the prior quarter, supported by higher revenue and operating cash flow. Compared to the same quarter last year, free cash flow was higher despite slightly lower revenue, driven by reduced capital expenditure.
- Revenue and operating cash flow both increased from the prior quarter, while capital expenditure declined, resulting in higher free cash flow and an improved free cash flow margin. Compared to the same quarter last year, revenue was slightly lower but operating cash flow was stable, and lower capital expenditure led to higher free cash flow and a stronger margin.
- Compared to the prior quarter, all key metrics improved: revenue, operating cash flow, free cash flow, and free cash flow margin were higher, while capital expenditure was lower. Versus the same quarter last year, revenue was lower but free cash flow and margin were higher, with operating cash flow stable and capital expenditure lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.3B
Cash generated by operations before capital spending.
CapEx
$716.0M
Capital spending and related asset purchases.
FCF margin
10.6%
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 | $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% |
| 2025-12-31 | $24.5B | $3.3B | $716.0M | $2.6B | 10.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 144.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$17.7B | 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 Reduction
Capital expenditure was lower compared to both the prior quarter and the same quarter last year, which directly contributed to higher free cash flow and an improved free cash flow margin. This occurred even as revenue was slightly lower than the year-ago quarter.
The reduction in capital expenditure was the strongest observable driver of the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow both increased from the prior quarter, while capital expenditure declined, resulting in higher free cash flow and an improved free cash flow margin. Compared to the same quarter last year, revenue was slightly lower but operating cash flow was stable, and lower capital expenditure led to higher free cash flow and a stronger margin.
Compared to the prior quarter, all key metrics improved: revenue, operating cash flow, free cash flow, and free cash flow margin were higher, while capital expenditure was lower. Versus the same quarter last year, revenue was lower but free cash flow and margin were higher, with operating cash flow stable and capital expenditure lower.
Monitor the trend in capital expenditure, as its reduction was the primary factor behind the free cash flow improvement relative to both the prior quarter and the same quarter last year.