Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow and margin improved significantly compared to the same quarter last year, driven by higher operating cash flow. Relative to the prior quarter, free cash flow and margin were lower.
- Revenue was lower than the prior quarter but slightly higher than a year ago. Operating cash flow was higher than a year ago but lower than the prior quarter. Capital expenditure was slightly higher than both prior periods. The resulting free cash flow margin improved markedly from a year ago and remained strong, though it weakened from the prior quarter.
- Compared to the same quarter last year, free cash flow and its margin were substantially higher, with operating cash flow also higher. Versus the preceding quarter, free cash flow and margin were lower, as both revenue and operating cash flow declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$119.0M
Capital spending and related asset purchases.
FCF margin
42.4%
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 | $3.6B | $158.0M | $64.0M | $94.0M | 2.6% |
| 2024-12-31 | $5.1B | -$362.0M | $74.0M | -$436.0M | -8.6% |
| 2025-03-31 | $4.4B | $2.0B | $74.0M | $1.9B | 44.4% |
| 2025-06-30 | $3.3B | $1.5B | $119.0M | $1.4B | 42.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 193.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | 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.
Strong operating cash flow lift
Operating cash flow increased substantially compared to the same quarter last year, more than offsetting a slight rise in capital expenditure. This was the strongest observable driver behind the improvement in free cash flow.
The higher operating cash flow directly improved free cash flow and its margin versus a year ago.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but slightly higher than a year ago. Operating cash flow was higher than a year ago but lower than the prior quarter. Capital expenditure was slightly higher than both prior periods. The resulting free cash flow margin improved markedly from a year ago and remained strong, though it weakened from the prior quarter.
Compared to the same quarter last year, free cash flow and its margin were substantially higher, with operating cash flow also higher. Versus the preceding quarter, free cash flow and margin were lower, as both revenue and operating cash flow declined.
Monitor the trajectory of operating cash flow, as it is the primary component driving free cash flow fluctuations.