Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened sharply from the prior quarter and also declined versus the same quarter last year. The drop was driven by lower operating cash flow, while capital expenditure was reduced.
- Revenue increased compared to both the prior quarter and the year-ago quarter, but operating cash flow fell, resulting in a lower free cash flow margin. The conversion from revenue to cash was less efficient this quarter.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were both lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, operating cash flow and free cash flow were also lower, with a weaker margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$607.0M
Capital spending and related asset purchases.
FCF margin
1.3%
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 | $95.4B | -$745.0M | $670.0M | -$1.4B | -1.5% |
| 2024-12-31 | $97.7B | $1.9B | $768.0M | $1.1B | 1.1% |
| 2025-03-31 | $94.6B | $4.6B | $743.0M | $3.8B | 4.0% |
| 2025-06-30 | $98.9B | $1.9B | $607.0M | $1.3B | 1.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 126.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | 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.
Operating Cash Flow Decline
Operating cash flow decreased from both the prior quarter and the year-ago quarter, despite higher revenue. This was the strongest observable driver of the lower free cash flow.
The lower operating cash flow directly reduced free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to both the prior quarter and the year-ago quarter, but operating cash flow fell, resulting in a lower free cash flow margin. The conversion from revenue to cash was less efficient this quarter.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were both lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, operating cash flow and free cash flow were also lower, with a weaker margin.
Monitor operating cash flow trends, as the decline was the primary factor behind the weakened free cash flow.