Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow increased from the preceding quarter, leading to a higher free cash flow. However, free cash flow and its margin were lower compared to the same quarter one year earlier.
- The conversion from revenue to free cash flow improved sequentially, as operating cash flow grew while capital expenditure decreased. The free cash flow margin rose from the prior quarter, reflecting a higher proportion of revenue converted to free cash.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, with capital expenditure lower. Versus the year-ago quarter, revenue was higher, but operating cash flow and free cash flow were lower, and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.3B
Cash generated by operations before capital spending.
CapEx
$369.0M
Capital spending and related asset purchases.
FCF margin
20.8%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $8.5B | $3.6B | $257.0M | $3.3B | 39.0% |
| 2024-12-31 | $9.1B | $4.8B | $371.0M | $4.4B | 48.4% |
| 2025-03-31 | $8.1B | $1.4B | $411.0M | $980.0M | 12.0% |
| 2025-06-30 | $9.2B | $2.3B | $369.0M | $1.9B | 20.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 133.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$48.2B | 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 Recovery
Operating cash flow increased from the prior quarter, contributing to a higher free cash flow and margin. The year-ago quarter had a higher operating cash flow, indicating a recovery from a recent low.
This recovery in operating cash flow was the primary factor behind the sequential improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The conversion from revenue to free cash flow improved sequentially, as operating cash flow grew while capital expenditure decreased. The free cash flow margin rose from the prior quarter, reflecting a higher proportion of revenue converted to free cash.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, with capital expenditure lower. Versus the year-ago quarter, revenue was higher, but operating cash flow and free cash flow were lower, and capital expenditure was higher.
Monitor the clinical development of MariTide, as the filing reported Phase 2 results showing weight loss and no new safety signals.