Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the same quarter last year, supported by an increase in operating cash flow. The free cash flow margin also strengthened compared with those periods.
- Revenue was stable relative to a year earlier and higher sequentially. Operating cash flow rose substantially from the prior quarter and was also slightly above the year-ago level. Capital expenditure increased from the prior quarter but remained below the year-ago figure, enabling free cash flow and its margin to improve on both comparisons.
- Compared with the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by a stronger operating cash flow. Versus the same quarter one year earlier, free cash flow and margin also improved, even though revenue was little changed.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$665.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$817.5M
Cash generated by operations before capital spending.
CapEx
$152.2M
Capital spending and related asset purchases.
FCF margin
34.0%
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 | $2.0B | $835.7M | $166.3M | $669.5M | 33.5% |
| 2024-12-31 | $1.9B | $883.4M | $184.0M | $699.4M | 36.2% |
| 2025-03-31 | $1.8B | $555.1M | $127.6M | $427.5M | 23.5% |
| 2025-06-30 | $2.0B | $817.5M | $152.2M | $665.4M | 34.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 275.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.5B | 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 Growth
Operating cash flow was notably higher than both the prior quarter and the same quarter last year, serving as the strongest observable driver of free cash flow improvement. Capital expenditure increases were moderate and did not offset the gain.
The free cash flow margin expanded on both sequential and year-over-year bases, reflecting the operating cash flow strength.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to a year earlier and higher sequentially. Operating cash flow rose substantially from the prior quarter and was also slightly above the year-ago level. Capital expenditure increased from the prior quarter but remained below the year-ago figure, enabling free cash flow and its margin to improve on both comparisons.
Compared with the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by a stronger operating cash flow. Versus the same quarter one year earlier, free cash flow and margin also improved, even though revenue was little changed.
Monitor whether operating cash flow can sustain its elevated level, as it was the primary factor behind the free cash flow improvement.