Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened in the current quarter compared with both the prior quarter and the same quarter last year, despite a slight rise in revenue. Cash conversion from revenue declined substantially.
- Revenue was higher than the prior quarter and modestly higher than a year ago, but operating cash flow was much lower than both periods, leading to a lower free cash flow and a narrower free cash flow margin.
- Compared with the prior quarter, free cash flow and margin weakened sharply as operating cash flow decreased while capital expenditure was stable. Versus the same quarter last year, free cash flow and margin also declined even though revenue was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$720.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$827.0M
Cash generated by operations before capital spending.
CapEx
$107.0M
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 | $7.5B | $4.3B | $141.0M | $4.2B | 55.2% |
| 2024-12-31 | $7.6B | $3.0B | $147.0M | $2.8B | 37.4% |
| 2025-03-31 | $6.7B | $1.8B | $104.0M | $1.7B | 24.8% |
| 2025-06-30 | $7.1B | $827.0M | $107.0M | $720.0M | 10.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 36.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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 decline
Operating cash flow dropped substantially from both the prior quarter and the year-ago quarter, which directly caused free cash flow to contract despite higher revenue and slightly lower capital expenditure.
If operating cash flow remains at this weaker level, free cash flow generation will continue to be constrained.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter and modestly higher than a year ago, but operating cash flow was much lower than both periods, leading to a lower free cash flow and a narrower free cash flow margin.
Compared with the prior quarter, free cash flow and margin weakened sharply as operating cash flow decreased while capital expenditure was stable. Versus the same quarter last year, free cash flow and margin also declined even though revenue was slightly higher.
Monitor whether operating cash flow can recover toward historical levels, as the current quarter's level was the lowest among the three periods presented.