Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin expanded significantly, reflecting a stronger cash conversion rate.
- Revenue was stable compared to a year ago and higher than the prior quarter. Operating cash flow rose substantially relative to both periods, leading to a higher free cash flow after capital expenditure. The free cash flow margin improved, indicating a higher proportion of revenue converted into free cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue was similar, while operating cash flow and free cash flow were higher, and the margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$14.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.9B
Cash generated by operations before capital spending.
CapEx
$361.0M
Capital spending and related asset purchases.
FCF margin
29.0%
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 | $11.9B | $5.6B | $324.0M | $5.3B | 44.3% |
| 2024-12-31 | $12.3B | $4.4B | $378.0M | $4.1B | 32.9% |
| 2025-03-31 | $11.2B | $2.0B | $260.0M | $1.7B | 15.1% |
| 2025-06-30 | $12.3B | $3.9B | $361.0M | $3.6B | 29.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 271.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$36.3B | 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 was the strongest observable driver, rising significantly from both the prior quarter and the year-ago quarter. This increase directly lifted free cash flow and the free cash flow margin, even as capital expenditure rose modestly.
The higher operating cash flow was the primary factor behind the improved free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to a year ago and higher than the prior quarter. Operating cash flow rose substantially relative to both periods, leading to a higher free cash flow after capital expenditure. The free cash flow margin improved, indicating a higher proportion of revenue converted into free cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue was similar, while operating cash flow and free cash flow were higher, and the margin strengthened.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in subsequent quarters.