Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive from the prior quarter, driving free cash flow to a positive figure. Free cash flow margin improved significantly versus the preceding quarter but was lower than the same quarter last year.
- Revenue increased compared to the prior quarter, and operating cash flow shifted from negative to positive, resulting in positive free cash flow. Capital expenditure was relatively stable across periods, so the improvement in free cash flow was primarily driven by the swing in operating cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow margin turning positive. Versus the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$723.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$655.0M
Capital spending and related asset purchases.
FCF margin
7.1%
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 | $10.5B | $1.5B | $505.0M | $981.0M | 9.3% |
| 2024-12-31 | $8.9B | $2.7B | $943.0M | $1.8B | 20.1% |
| 2025-03-31 | $6.8B | -$659.0M | $645.0M | -$1.3B | -19.3% |
| 2025-06-30 | $10.2B | $1.4B | $655.0M | $723.0M | 7.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 54.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.8B | 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 Recovery
Operating cash flow rebounded from a negative figure in the prior quarter to a positive amount in the current quarter, which was the strongest observable driver of the free cash flow improvement.
This swing was the primary factor behind free cash flow turning positive and the margin improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to the prior quarter, and operating cash flow shifted from negative to positive, resulting in positive free cash flow. Capital expenditure was relatively stable across periods, so the improvement in free cash flow was primarily driven by the swing in operating cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow margin turning positive. Versus the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor whether operating cash flow can sustain its positive level in the coming quarter, given the prior quarter's negative figure.