Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both increased compared to the same quarter last year, while free cash flow margin improved. Versus the prior quarter, revenue rose but operating cash flow and free cash flow were slightly lower, causing the margin to narrow.
- Operating cash flow was substantially higher than capital expenditure, resulting in a free cash flow margin that remained above forty percent. The conversion from revenue to free cash flow was supported by operating cash flow that exceeded capital spending by a wide margin.
- Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were slightly lower, leading to a weakened free cash flow margin. Relative to the same quarter last year, revenue, operating cash flow, free cash flow, and margin all improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.2B
Cash generated by operations before capital spending.
CapEx
$64.0M
Capital spending and related asset purchases.
FCF margin
46.1%
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 | $8.0B | $2.4B | $77.0M | $2.3B | 28.7% |
| 2024-12-31 | $5.5B | $721.0M | $76.0M | $645.0M | 11.8% |
| 2025-03-31 | $4.8B | $3.3B | $121.0M | $3.2B | 66.4% |
| 2025-06-30 | $6.8B | $3.2B | $64.0M | $3.1B | 46.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | n/a | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$877.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth Supporting Cash Generation
Revenue was higher than both the prior quarter and the same quarter last year, providing a larger base for cash generation. Operating cash flow increased year-over-year, contributing to a higher free cash flow margin compared to a year ago.
The year-over-year improvement in free cash flow margin was the strongest observable change, driven by revenue growth and higher operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than capital expenditure, resulting in a free cash flow margin that remained above forty percent. The conversion from revenue to free cash flow was supported by operating cash flow that exceeded capital spending by a wide margin.
Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were slightly lower, leading to a weakened free cash flow margin. Relative to the same quarter last year, revenue, operating cash flow, free cash flow, and margin all improved.
Monitor the trend in operating cash flow relative to revenue, as it declined sequentially despite higher revenue.