Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined from the prior quarter and the year-ago period, driven by lower operating cash flow despite stable capital expenditure. The cash conversion margin weakened accordingly.
- Revenue increased quarter-over-quarter but was roughly flat compared to the same quarter last year. Operating cash flow decreased, while capital expenditure remained similar, resulting in a lower free cash flow and a narrower free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow and its margin were lower. Versus the same quarter one year earlier, free cash flow and margin also weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$648.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
3.9%
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 | $15.7B | $1.3B | $1.3B | -$54.0M | -0.3% |
| 2024-12-31 | $15.6B | $1.9B | $1.3B | $584.0M | 3.8% |
| 2025-03-31 | $14.0B | $2.4B | $1.2B | $1.2B | 8.2% |
| 2025-06-30 | $16.6B | $1.9B | $1.2B | $648.0M | 3.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 30.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Weakening Cash Conversion
Free cash flow and margin declined as operating cash flow decreased relative to revenue. The decline in operating cash flow was the most significant observable change among the metrics.
The lower free cash flow reduces the cushion for discretionary spending or debt reduction.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased quarter-over-quarter but was roughly flat compared to the same quarter last year. Operating cash flow decreased, while capital expenditure remained similar, resulting in a lower free cash flow and a narrower free cash flow margin.
Compared to the immediately preceding quarter, free cash flow and its margin were lower. Versus the same quarter one year earlier, free cash flow and margin also weakened.
Monitor operating cash flow trends, as the decline was the primary factor behind the lower free cash flow.