Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, driven by a sharp increase in operating cash flow that more than offset higher capital expenditure. The free cash flow margin improved significantly from the prior quarter but remained below the year-ago level.
- Revenue rose compared to both the prior quarter and the year-ago quarter. Operating cash flow increased substantially, while capital expenditure also grew, resulting in a small positive free cash flow and a low single-digit free cash flow margin.
- Compared to the prior quarter, free cash flow improved from negative to positive, and the margin strengthened. Versus the same quarter last year, free cash flow and margin were lower, as capital expenditure rose more than operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$13.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$332.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$32.5B
Cash generated by operations before capital spending.
CapEx
$32.2B
Capital spending and related asset purchases.
FCF margin
0.2%
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 | $158.9B | $26.0B | $22.6B | $3.4B | 2.1% |
| 2024-12-31 | $187.8B | $45.6B | $27.8B | $17.8B | 9.5% |
| 2025-03-31 | $155.7B | $17.0B | $25.0B | -$8.0B | -5.1% |
| 2025-06-30 | $167.7B | $32.5B | $32.2B | $332.0M | 0.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 19.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | $1.7B | 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 from both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow. This improvement was the strongest observable driver of the quarter's cash conversion.
The higher operating cash flow enabled the company to generate positive free cash flow despite a substantial increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose compared to both the prior quarter and the year-ago quarter. Operating cash flow increased substantially, while capital expenditure also grew, resulting in a small positive free cash flow and a low single-digit free cash flow margin.
Compared to the prior quarter, free cash flow improved from negative to positive, and the margin strengthened. Versus the same quarter last year, free cash flow and margin were lower, as capital expenditure rose more than operating cash flow.
Monitor the trend in capital expenditure relative to operating cash flow, as the gap between them narrowed this quarter but remained wide year-over-year.