Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved sharply compared to the same quarter last year but declined from the immediately preceding quarter. Operating cash flow was significantly higher than a year ago, while capital expenditure remained stable year-over-year.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow rose year-over-year but fell sequentially, while capital expenditure matched the year-ago level and increased from the prior quarter. These changes resulted in free cash flow and free cash flow margin being higher than a year ago but lower than the prior quarter.
- Compared to the immediately preceding quarter, free cash flow margin weakened due to a lower operating cash flow and a higher capital expenditure. Versus the same quarter one year earlier, the margin strengthened substantially as operating cash flow increased while capital expenditure remained unchanged.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$19.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$7.8B
Cash generated by operations before capital spending.
CapEx
$2.7B
Capital spending and related asset purchases.
FCF margin
16.9%
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 | $32.1B | $7.0B | $2.9B | $4.1B | 12.8% |
| 2024-12-31 | $31.9B | $8.1B | $3.9B | $4.2B | 13.1% |
| 2025-03-31 | $29.9B | $8.3B | $2.3B | $6.0B | 20.2% |
| 2025-06-30 | $30.3B | $7.8B | $2.7B | $5.1B | 16.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 46.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.8% | 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.
Higher Operating Cash Flow Year-over-Year
Operating cash flow was substantially higher than the same quarter last year, while capital expenditure remained flat. This combination drove a significant year-over-year improvement in free cash flow and margin.
The year-over-year increase in operating cash flow was the primary factor behind the higher free cash flow compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow rose year-over-year but fell sequentially, while capital expenditure matched the year-ago level and increased from the prior quarter. These changes resulted in free cash flow and free cash flow margin being higher than a year ago but lower than the prior quarter.
Compared to the immediately preceding quarter, free cash flow margin weakened due to a lower operating cash flow and a higher capital expenditure. Versus the same quarter one year earlier, the margin strengthened substantially as operating cash flow increased while capital expenditure remained unchanged.
Monitor the trend in capital expenditure, which increased from the prior quarter and matched the year-ago level, as it directly impacts free cash flow conversion.