Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow both improved sharply versus the prior quarter and the same quarter last year, driving a significantly higher free cash flow margin. The company's cash conversion was robust as revenue also grew.
- Revenue increased, and operating cash flow as a percentage of revenue was much higher, leading to a significant improvement in free cash flow margin.
- Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all increased. Versus the same quarter one year earlier, all metrics were also higher, with operating cash flow and free cash flow showing particularly large improvements.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$18.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.2B
Cash generated by operations before capital spending.
CapEx
$269.0M
Capital spending and related asset purchases.
FCF margin
31.7%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $14.5B | $5.4B | $249.0M | $5.2B | 35.9% |
| 2024-12-31 | $15.1B | $7.0B | $291.0M | $6.8B | 44.7% |
| 2025-03-31 | $13.3B | $1.6B | $235.0M | $1.4B | 10.5% |
| 2025-06-30 | $15.4B | $5.2B | $269.0M | $4.9B | 31.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 520.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | 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 Surge
Operating cash flow increased significantly compared to both the prior quarter and the same quarter last year. According to the filing, the increase was primarily due to higher net revenues and lower acquisition-related cash expenses, partially offset by higher payments for litigation and contingent consideration.
The strong operating cash flow directly lifted free cash flow and margin, reflecting improved cash generation efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, and operating cash flow as a percentage of revenue was much higher, leading to a significant improvement in free cash flow margin.
Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all increased. Versus the same quarter one year earlier, all metrics were also higher, with operating cash flow and free cash flow showing particularly large improvements.
Monitor the impact of litigation payments and contingent consideration obligations on future cash flows, as noted in the filing.