Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased compared to both the prior quarter and the same quarter last year. The decline was accompanied by higher capital expenditure and a lower conversion of revenue into operating cash flow.
- Revenue was higher than the prior quarter but lower than a year ago, while operating cash flow decreased sequentially and year-over-year. The combination of lower operating cash flow and higher capital expenditure resulted in a free cash flow margin that weakened from both comparison periods.
- Compared to the immediately preceding quarter, free cash flow and margin were lower due to a decline in operating cash flow and an increase in capital expenditure. Versus the same quarter one year earlier, all cash flow metrics were weaker, with revenue also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$10.1B
Cash generated by operations before capital spending.
CapEx
$4.9B
Capital spending and related asset purchases.
FCF margin
8.5%
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 | $62.0B | $1.8B | $4.7B | -$2.9B | -4.7% |
| 2024-12-31 | $62.9B | $4.6B | $5.3B | -$726.0M | -1.2% |
| 2025-03-31 | $59.4B | $10.9B | $4.3B | $6.6B | 11.2% |
| 2025-06-30 | $61.4B | $10.1B | $4.9B | $5.2B | 8.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 42.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.9% | 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 was lower than both the prior quarter and the same quarter last year, despite revenue being higher than the prior quarter. This was the strongest observable driver of the decline in free cash flow.
Lower operating cash flow reduced the cash available for investment and other uses after capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter but lower than a year ago, while operating cash flow decreased sequentially and year-over-year. The combination of lower operating cash flow and higher capital expenditure resulted in a free cash flow margin that weakened from both comparison periods.
Compared to the immediately preceding quarter, free cash flow and margin were lower due to a decline in operating cash flow and an increase in capital expenditure. Versus the same quarter one year earlier, all cash flow metrics were weaker, with revenue also lower.
The trajectory of capital expenditure relative to operating cash flow is a concrete item to monitor, as it directly affects free cash flow generation.