Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined sequentially and year-over-year, but free cash flow margin improved versus both periods. Operating cash flow remained stable sequentially and increased from the prior year, while capital expenditure rose compared to the year-ago quarter.
- Free cash flow was nearly unchanged from the prior quarter and higher than the year-ago quarter, supported by stable operating cash flow relative to a lower revenue base. The free cash flow margin improved as the decline in revenue was offset by modestly reduced capital expenditure sequentially and higher operating cash flow year-over-year.
- Compared to the prior quarter, revenue was lower, operating cash flow and free cash flow were essentially stable, and free cash flow margin improved. Versus the same quarter last year, revenue was lower, operating cash flow and free cash flow were higher, and capital expenditure was higher, leading to an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$701.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$979.0M
Cash generated by operations before capital spending.
CapEx
$278.0M
Capital spending and related asset purchases.
FCF margin
7.8%
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 | $10.0B | $2.7B | $286.0M | $2.4B | 24.2% |
| 2025-03-31 | $9.0B | $553.0M | $251.0M | $302.0M | 3.4% |
| 2025-06-30 | $9.8B | $983.0M | $281.0M | $702.0M | 7.2% |
| 2025-09-30 | $9.0B | $979.0M | $278.0M | $701.0M | 7.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -473.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$29.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved cash conversion efficiency
Free cash flow margin improved sequentially and year-over-year despite lower revenue, as operating cash flow held steady and capital expenditure was slightly reduced from the prior quarter. This indicates a stronger conversion of revenue into free cash flow.
The improved margin supports higher free cash flow on a lower revenue base, strengthening cash generation relative to sales.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow was nearly unchanged from the prior quarter and higher than the year-ago quarter, supported by stable operating cash flow relative to a lower revenue base. The free cash flow margin improved as the decline in revenue was offset by modestly reduced capital expenditure sequentially and higher operating cash flow year-over-year.
Compared to the prior quarter, revenue was lower, operating cash flow and free cash flow were essentially stable, and free cash flow margin improved. Versus the same quarter last year, revenue was lower, operating cash flow and free cash flow were higher, and capital expenditure was higher, leading to an improved margin.
Monitor the trajectory of revenue given the sequential decline and its impact on cash flow generation.