Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow increased substantially compared to both the prior quarter and the same quarter last year, driving a marked improvement in free cash flow. Revenue also grew, while capital expenditure remained relatively stable, resulting in a higher free cash flow margin.
- Revenue increased from the prior quarter and the year-ago quarter. Operating cash flow rose more than proportionally, leading to free cash flow that was higher than both comparison periods. The free cash flow margin improved as a result.
- Compared to the preceding quarter, revenue, operating cash flow, and free cash flow all increased, with free cash flow margin rising from a lower level. Versus the same quarter one year earlier, all metrics showed improvement, particularly operating cash flow and free cash flow, which were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.1B
Cash generated by operations before capital spending.
CapEx
$267.0M
Capital spending and related asset purchases.
FCF margin
3.6%
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 | $45.1B | $2.7B | $332.0M | $2.3B | 5.2% |
| 2024-12-31 | $45.4B | $706.0M | $322.0M | $384.0M | 0.8% |
| 2025-03-31 | $48.9B | $1.0B | $196.0M | $821.0M | 1.7% |
| 2025-06-30 | $49.8B | $2.1B | $267.0M | $1.8B | 3.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 102.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$21.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong operating cash flow
Operating cash flow rose significantly from both the prior quarter and the year-ago quarter, outpacing the growth in revenue. This was the primary factor behind the improved free cash flow and margin.
The quarter's free cash flow was higher than the prior quarter and the year-ago quarter, reflecting the strength in cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter and the year-ago quarter. Operating cash flow rose more than proportionally, leading to free cash flow that was higher than both comparison periods. The free cash flow margin improved as a result.
Compared to the preceding quarter, revenue, operating cash flow, and free cash flow all increased, with free cash flow margin rising from a lower level. Versus the same quarter one year earlier, all metrics showed improvement, particularly operating cash flow and free cash flow, which were higher.
Monitor the trajectory of free cash flow margin, as its increase this quarter was driven by a larger relative gain in operating cash flow.