Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved versus the prior quarter and the year-ago quarter. Free cash flow and free cash flow margin were lower sequentially but also lower year over year.
- Operating cash flow decreased relative to both the preceding quarter and the same quarter last year. Capital expenditure rose compared with both periods, leading to a larger reduction in free cash flow than the decline in operating cash flow.
- Compared with the prior quarter, revenue increased while operating cash flow, free cash flow, and free cash flow margin all weakened. Versus the year-ago quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$232.0M
Capital spending and related asset purchases.
FCF margin
2.2%
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 | $52.3B | -$1.6B | $90.0M | -$1.7B | -3.3% |
| 2024-12-31 | $55.3B | -$396.0M | $99.0M | -$495.0M | -0.9% |
| 2025-03-31 | $54.9B | $2.9B | $126.0M | $2.8B | 5.1% |
| 2025-06-30 | $60.2B | $1.5B | $232.0M | $1.3B | 2.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 541.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | 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 decline
Operating cash flow dropped from the prior quarter and from the year-ago quarter, representing the strongest observable driver of the reduction in free cash flow. Capital expenditure also rose, but the decline in operating cash flow had a larger absolute impact.
The lower operating cash flow, combined with higher capital expenditure, resulted in free cash flow declining more than proportionally relative to revenue growth.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased relative to both the preceding quarter and the same quarter last year. Capital expenditure rose compared with both periods, leading to a larger reduction in free cash flow than the decline in operating cash flow.
Compared with the prior quarter, revenue increased while operating cash flow, free cash flow, and free cash flow margin all weakened. Versus the year-ago quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were lower.
Monitor capital expenditure, which increased sequentially and year over year, as a contributing factor to the lower free cash flow.