Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company generated positive free cash flow this quarter, with a strong conversion from revenue. Operating cash flow grew substantially compared to both the prior quarter and the same quarter last year, while capital expenditure also increased.
- This quarter's cash conversion was driven by revenue growth and higher operating cash flow, resulting in a positive free cash flow margin. The margin improved compared to the prior quarter but weakened relative to the same quarter last year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all increased significantly, turning from negative to positive free cash flow. Against the same quarter one year earlier, free cash flow was higher while the free cash flow margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$934.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$1.3B
Capital spending and related asset purchases.
FCF margin
12.4%
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 | $6.7B | $1.9B | $1.2B | $673.0M | 10.1% |
| 2024-12-31 | $5.9B | $1.4B | $1.2B | $197.0M | 3.4% |
| 2025-03-31 | $5.6B | $1.1B | $1.2B | -$114.0M | -2.0% |
| 2025-06-30 | $7.5B | $2.2B | $1.3B | $934.0M | 12.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 60.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 16.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue and Operating Cash Flow Growth
Revenue and operating cash flow both increased markedly this quarter, supporting a substantial improvement in free cash flow.
The strong cash generation enhances the company's financial flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
This quarter's cash conversion was driven by revenue growth and higher operating cash flow, resulting in a positive free cash flow margin. The margin improved compared to the prior quarter but weakened relative to the same quarter last year.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all increased significantly, turning from negative to positive free cash flow. Against the same quarter one year earlier, free cash flow was higher while the free cash flow margin was slightly lower.
Monitor the trajectory of capital expenditure, which increased compared to both prior periods.