Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Fiserv delivered a significant improvement in free cash flow for the second quarter of 2025, with a much higher margin than both the prior quarter and the same quarter last year. The company notes that its products and services are necessary for clients and non-discretionary in nature.
- Revenue increased compared to both the previous quarter and the year-ago period. Operating cash flow was substantially higher than both comparable periods, while capital expenditure also grew. The combination resulted in free cash flow that was higher than both the prior quarter and the same quarter one year earlier, and the free cash flow margin improved meaningfully.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, leading to a much improved free cash flow margin. Year over year, revenue and operating cash flow increased, capital expenditure was higher, and free cash flow and margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$479.0M
Capital spending and related asset purchases.
FCF margin
21.5%
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 | $5.2B | $2.2B | $402.0M | $1.8B | 35.2% |
| 2024-12-31 | $5.3B | $2.2B | $399.0M | $1.8B | 34.7% |
| 2025-03-31 | $5.1B | $648.0M | $335.0M | $313.0M | 6.1% |
| 2025-06-30 | $5.5B | $1.7B | $479.0M | $1.2B | 21.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 115.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.7% | 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 Strength
Operating cash flow was significantly higher than both the previous quarter and the same quarter one year earlier, driving the improvement in free cash flow and margin.
The higher operating cash flow was the primary factor behind the improved free cash flow and margin for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to both the previous quarter and the year-ago period. Operating cash flow was substantially higher than both comparable periods, while capital expenditure also grew. The combination resulted in free cash flow that was higher than both the prior quarter and the same quarter one year earlier, and the free cash flow margin improved meaningfully.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, leading to a much improved free cash flow margin. Year over year, revenue and operating cash flow increased, capital expenditure was higher, and free cash flow and margin improved.
Capital expenditure increased relative to both the prior quarter and the year-ago period, a trend that may affect future free cash flow if it continues.