Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to a year ago, while operating cash flow and free cash flow improved significantly from the prior quarter. The free cash flow margin strengthened sequentially but was slightly lower than the same quarter last year.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin reflected the conversion of revenue into free cash flow after capital spending.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter a year ago, revenue was slightly lower, operating cash flow was slightly higher, free cash flow was lower, and the free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.1B
Cash generated by operations before capital spending.
CapEx
$555.0M
Capital spending and related asset purchases.
FCF margin
15.5%
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 | $16.1B | $3.6B | $444.0M | $3.1B | 19.4% |
| 2024-12-31 | $16.2B | $3.4B | $703.0M | $2.7B | 16.6% |
| 2025-03-31 | $14.2B | $1.3B | $710.0M | $579.0M | 4.1% |
| 2025-06-30 | $16.6B | $3.1B | $555.0M | $2.6B | 15.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 117.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | 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 improvement
Operating cash flow was substantially higher than the prior quarter, driving a significant increase in free cash flow. This was the strongest observable driver of the quarter's cash conversion.
The higher operating cash flow directly improved free cash flow and the free cash flow margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin reflected the conversion of revenue into free cash flow after capital spending.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter a year ago, revenue was slightly lower, operating cash flow was slightly higher, free cash flow was lower, and the free cash flow margin weakened.
Monitor capital expenditure, which was higher than both the prior quarter and the same quarter last year.