Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply from the prior quarter, with operating cash flow and free cash flow both turning positive. Compared with the same quarter last year, free cash flow was higher, supported by stronger operating cash flow and a stable capital expenditure level.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow turned positive from a negative position in the prior quarter and was higher than the year-ago quarter. Capital expenditure was slightly higher than the prior quarter but similar to the year-ago quarter. Free cash flow turned positive and was higher than both comparison periods, with the free cash flow margin also improved.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow both improved from negative to positive, while revenue was higher. Compared with the same quarter one year earlier, operating cash flow and free cash flow were higher, and revenue was also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$198.0M
Capital spending and related asset purchases.
FCF margin
10.7%
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 |
|---|---|---|---|---|---|
| 2024-09-29 | $11.7B | $1.4B | $201.0M | $1.2B | 10.4% |
| 2024-12-31 | $13.3B | $2.2B | $355.0M | $1.8B | 13.5% |
| 2025-03-30 | $12.2B | -$148.0M | $142.0M | -$290.0M | -2.4% |
| 2025-06-29 | $13.0B | $1.6B | $198.0M | $1.4B | 10.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 138.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.2B | 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 turned positive from a negative position in the prior quarter and was higher than the year-ago quarter, driving the improvement in free cash flow. The filing notes a strong emphasis on cash flow generation underpinned by operating discipline focused on cost control and working capital management.
This recovery in operating cash flow was the strongest observable driver of the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow turned positive from a negative position in the prior quarter and was higher than the year-ago quarter. Capital expenditure was slightly higher than the prior quarter but similar to the year-ago quarter. Free cash flow turned positive and was higher than both comparison periods, with the free cash flow margin also improved.
Compared with the immediately preceding quarter, operating cash flow and free cash flow both improved from negative to positive, while revenue was higher. Compared with the same quarter one year earlier, operating cash flow and free cash flow were higher, and revenue was also higher.
Monitor whether operating cash flow can sustain its positive level in future quarters, given the prior quarter's negative result.