Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow rose sequentially as operating cash flow increased, while capital expenditure also grew. The free cash flow margin improved from the prior quarter but was lower than the same quarter a year earlier.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow increased from the prior quarter but was slightly below the year-ago level, while capital expenditure was higher than both periods, resulting in a free cash flow margin that improved sequentially but remained lower year over year.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher. Versus the year-ago quarter, revenue was higher, but free cash flow was lower due to a lower operating cash flow and higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$18.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.1B
Cash generated by operations before capital spending.
CapEx
$399.0M
Capital spending and related asset purchases.
FCF margin
307.3%
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 | $1.4B | $6.5B | $312.0M | $6.1B | 424.7% |
| 2024-12-31 | $1.6B | $2.4B | $356.0M | $2.1B | 129.9% |
| 2025-03-31 | $1.5B | $4.7B | $348.0M | $4.3B | 290.1% |
| 2025-06-30 | $1.8B | $6.1B | $399.0M | $5.7B | 307.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -132.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 21.6% | 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.
Increased Operating Cash Flow
Operating cash flow rose from the prior quarter, outpacing the increase in revenue. This was the primary factor behind the sequential improvement in free cash flow.
The higher operating cash flow strengthened the company's free cash generation compared to the prior quarter.
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 increased from the prior quarter but was slightly below the year-ago level, while capital expenditure was higher than both periods, resulting in a free cash flow margin that improved sequentially but remained lower year over year.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher. Versus the year-ago quarter, revenue was higher, but free cash flow was lower due to a lower operating cash flow and higher capital expenditure.
Monitor the trend in capital expenditure relative to revenue, as it increased from both prior periods.