Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was stable sequentially despite a slight decline in operating cash flow, as capital expenditure dropped sharply. Compared to the same quarter last year, free cash flow and margin were lower, driven by a reduction in operating cash flow.
- Revenue increased slightly from the prior quarter and more notably from a year ago, yet operating cash flow declined both sequentially and year-over-year, resulting in a lower free cash flow margin. Capital expenditure was minimal in the current quarter, which helped sustain free cash flow near the prior quarter's level despite the weaker cash conversion from revenue.
- Compared to the immediately preceding quarter, free cash flow was essentially stable as a sharp reduction in capital expenditure offset a modest decline in operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were lower, with operating cash flow declining while revenue was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$1.0M
Capital spending and related asset purchases.
FCF margin
11.3%
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 | $16.6B | $3.2B | $63.0M | $3.1B | 18.9% |
| 2024-12-31 | $16.5B | $1.7B | $50.0M | $1.7B | 10.0% |
| 2025-03-31 | $16.5B | $2.0B | $92.0M | $1.9B | 11.4% |
| 2025-06-30 | $16.6B | $1.9B | $1.0M | $1.9B | 11.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 88.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.0% | 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 Weakening
Operating cash flow decreased from the prior quarter and from the same quarter last year, while revenue increased in both comparisons. This divergence between revenue growth and cash generation is the strongest observable driver of the lower free cash flow margin.
The weakening of operating cash flow relative to revenue directly reduced free cash flow and margin compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased slightly from the prior quarter and more notably from a year ago, yet operating cash flow declined both sequentially and year-over-year, resulting in a lower free cash flow margin. Capital expenditure was minimal in the current quarter, which helped sustain free cash flow near the prior quarter's level despite the weaker cash conversion from revenue.
Compared to the immediately preceding quarter, free cash flow was essentially stable as a sharp reduction in capital expenditure offset a modest decline in operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were lower, with operating cash flow declining while revenue was higher.
Monitor the trajectory of operating cash flow, which declined both sequentially and year-over-year despite higher revenue.