Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased sequentially and year-over-year, but free cash flow declined sharply due to a significant rise in capital expenditure relative to operating cash flow. The resulting free cash flow margin weakened compared to both the prior quarter and the same quarter last year.
- Operating cash flow improved from a year ago but decreased from the prior quarter, while capital expenditure rose markedly, reducing cash available for distribution. As a result, free cash flow as a proportion of revenue dropped significantly.
- Compared to the prior quarter, free cash flow and margin both declined sharply, driven by lower operating cash flow and higher capital expenditure. Year-over-year, free cash flow also fell despite higher operating cash flow, as capital expenditure growth outpaced revenue expansion.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$66.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$27.7B
Cash generated by operations before capital spending.
CapEx
$22.4B
Capital spending and related asset purchases.
FCF margin
5.5%
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 | $88.3B | $30.7B | $13.1B | $17.6B | 20.0% |
| 2024-12-31 | $96.5B | $39.1B | $14.3B | $24.8B | 25.7% |
| 2025-03-31 | $90.2B | $36.1B | $17.2B | $19.0B | 21.0% |
| 2025-06-30 | $96.4B | $27.7B | $22.4B | $5.3B | 5.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 18.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 23.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Surge
Capital expenditure rose substantially from both the prior quarter and a year ago, consuming a larger portion of operating cash flow. This was the most significant factor behind the decline in free cash flow.
The higher capital outlay directly reduced free cash flow and margin, indicating a shift toward heavier investment spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved from a year ago but decreased from the prior quarter, while capital expenditure rose markedly, reducing cash available for distribution. As a result, free cash flow as a proportion of revenue dropped significantly.
Compared to the prior quarter, free cash flow and margin both declined sharply, driven by lower operating cash flow and higher capital expenditure. Year-over-year, free cash flow also fell despite higher operating cash flow, as capital expenditure growth outpaced revenue expansion.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the elevated spending level is a primary factor compressing free cash flow.