Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable sequentially and year-over-year, while operating cash flow softened. Free cash flow contracted sharply from the prior quarter and was lower than the year-ago period, driven by increased capital expenditure.
- Operating cash flow as a share of revenue weakened sequentially and year-over-year, while capital expenditure rose, resulting in a lower free cash flow margin compared to both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, free cash flow was sharply lower despite similar revenue, reflecting higher capital expenditure and lower operating cash flow. Versus the same quarter one year earlier, free cash flow was lower as operating cash flow declined and capital expenditure remained elevated.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$726.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.6B
Cash generated by operations before capital spending.
CapEx
$2.9B
Capital spending and related asset purchases.
FCF margin
5.3%
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 | $13.8B | $3.9B | $2.6B | $1.3B | 9.7% |
| 2024-12-31 | $13.9B | $3.5B | $3.1B | $398.0M | 2.9% |
| 2025-03-31 | $13.7B | $4.2B | $2.4B | $1.8B | 13.4% |
| 2025-06-30 | $13.8B | $3.6B | $2.9B | $726.0M | 5.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 55.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 20.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$93.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital expenditure increase
Capital expenditure rose materially versus the prior quarter, absorbing a larger share of operating cash flow and reducing free cash flow despite stable revenue.
The elevated capital expenditure was the strongest observable driver of the free cash flow decline.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue weakened sequentially and year-over-year, while capital expenditure rose, resulting in a lower free cash flow margin compared to both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, free cash flow was sharply lower despite similar revenue, reflecting higher capital expenditure and lower operating cash flow. Versus the same quarter one year earlier, free cash flow was lower as operating cash flow declined and capital expenditure remained elevated.
Monitor the trend in capital expenditure given its notable sequential increase relative to revenue and operating cash flow.