Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved from the prior quarter, largely driven by higher operating cash flow. Compared to the same quarter last year, free cash flow and margin were stable.
- Revenue was higher than the prior quarter and the prior year quarter. Operating cash flow increased from the prior quarter but was unchanged from the prior year quarter. Capital expenditure was lower year-over-year. Free cash flow improved quarter-over-quarter and was slightly higher year-over-year, with the free cash flow margin rising from the prior quarter and remaining stable versus the prior year quarter.
- Compared to the prior quarter, free cash flow increased, driven by higher operating cash flow. Compared to the same quarter a year ago, free cash flow was slightly higher, with operating cash flow stable and capital expenditure lower. The free cash flow margin improved from the prior quarter and was nearly unchanged from the prior year quarter.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$502.0M
Capital spending and related asset purchases.
FCF margin
13.9%
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 | $10.6B | $2.7B | $556.0M | $2.1B | 20.2% |
| 2024-12-31 | $11.0B | $2.9B | $720.0M | $2.1B | 19.6% |
| 2025-03-31 | $10.4B | $1.4B | $484.0M | $933.0M | 9.0% |
| 2025-06-30 | $11.1B | $2.0B | $502.0M | $1.5B | 13.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 86.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.5B | 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 strength
Operating cash flow rose from the prior quarter, driving the improvement in free cash flow. The filing attributes the increase in year-to-date operating cash flow to higher segment operating earnings.
Free cash flow margin improved from the prior quarter due to the increase in operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter and the prior year quarter. Operating cash flow increased from the prior quarter but was unchanged from the prior year quarter. Capital expenditure was lower year-over-year. Free cash flow improved quarter-over-quarter and was slightly higher year-over-year, with the free cash flow margin rising from the prior quarter and remaining stable versus the prior year quarter.
Compared to the prior quarter, free cash flow increased, driven by higher operating cash flow. Compared to the same quarter a year ago, free cash flow was slightly higher, with operating cash flow stable and capital expenditure lower. The free cash flow margin improved from the prior quarter and was nearly unchanged from the prior year quarter.
Monitor changes in working capital, as the filing notes increases in inventory and trade receivables contributed to a rise in working capital.