Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable sequentially, while operating cash flow and free cash flow improved, leading to a stronger margin. Compared to the same quarter last year, revenue was higher but free cash flow and margin were lower.
- Revenue was unchanged from the prior quarter, while operating cash flow increased, resulting in higher free cash flow and an improved margin. Capital expenditure also rose, but the gain in operating cash flow more than offset it.
- Compared to the prior quarter, revenue was stable, operating cash flow and free cash flow improved, and margin strengthened. Relative to the same quarter last year, revenue was higher, but operating cash flow and free cash flow were lower, resulting in a weaker margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.8B
Cash generated by operations before capital spending.
CapEx
$208.0M
Capital spending and related asset purchases.
FCF margin
3.7%
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 | $36.9B | -$978.0M | $153.0M | -$1.1B | -3.1% |
| 2024-12-31 | $36.3B | -$587.0M | $154.0M | -$741.0M | -2.0% |
| 2025-03-31 | $42.5B | $1.5B | $135.0M | $1.4B | 3.2% |
| 2025-06-30 | $42.5B | $1.8B | $208.0M | $1.6B | 3.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -623.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.1B | 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 increased from the prior quarter, supported by net earnings and improved pharmacy rebate remittance timing as noted in the filing.
This improvement drove a higher free cash flow margin despite increased capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter, while operating cash flow increased, resulting in higher free cash flow and an improved margin. Capital expenditure also rose, but the gain in operating cash flow more than offset it.
Compared to the prior quarter, revenue was stable, operating cash flow and free cash flow improved, and margin strengthened. Relative to the same quarter last year, revenue was higher, but operating cash flow and free cash flow were lower, resulting in a weaker margin.
Monitor the trajectory of capital expenditure, which rose from the prior quarter.