Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow improved substantially from the prior quarter, though the year-ago comparison shows a slight decline in free cash flow. The free cash flow margin strengthened relative to the previous quarter but remained slightly below the same period last year.
- Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow grew sharply from the previous quarter but was slightly lower than a year ago. The resulting free cash flow and free cash flow margin followed a similar pattern.
- Compared to the prior quarter, all metrics improved: revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Versus the same quarter last year, revenue and capital expenditure were higher, while operating cash flow, free cash flow, and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$716.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$918.0M
Cash generated by operations before capital spending.
CapEx
$202.0M
Capital spending and related asset purchases.
FCF margin
10.2%
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 | $6.3B | $1.3B | $183.0M | $1.1B | 17.7% |
| 2024-12-31 | $6.2B | $1.6B | $255.0M | $1.3B | 21.5% |
| 2025-03-31 | $6.4B | $238.0M | $147.0M | $91.0M | 1.4% |
| 2025-06-30 | $7.0B | $918.0M | $202.0M | $716.0M | 10.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 73.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.5B | 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 significantly from the prior quarter, driving a marked improvement in free cash flow and free cash flow margin. This recovery was the primary factor behind the quarter-over-quarter strengthening.
The stronger operating cash flow enabled the company to fund higher capital expenditure while still delivering sequentially improved free cash flow.
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 same quarter last year. Operating cash flow grew sharply from the previous quarter but was slightly lower than a year ago. The resulting free cash flow and free cash flow margin followed a similar pattern.
Compared to the prior quarter, all metrics improved: revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Versus the same quarter last year, revenue and capital expenditure were higher, while operating cash flow, free cash flow, and free cash flow margin were lower.
Monitor the level of capital expenditure, which increased sequentially and from the same period last year, and its impact on free cash flow generation.