Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the prior quarter but weakened compared to the same quarter last year. Revenue was higher than both periods, while operating cash flow was lower than a year ago but higher than the prior quarter.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow, while higher than the prior quarter, was lower than the year-ago quarter. Capital expenditure increased versus both periods, resulting in free cash flow that was higher than the prior quarter but lower than the year-ago quarter. Free cash flow margin improved from the prior quarter but declined from the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow all increased, and free cash flow margin improved. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow were lower, and capital expenditure was higher, leading to a weakened free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$955.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$364.0M
Capital spending and related asset purchases.
FCF margin
8.5%
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 | $9.7B | $2.0B | $279.0M | $1.7B | 17.7% |
| 2024-12-31 | $9.2B | $2.3B | $100.0M | $2.2B | 23.8% |
| 2025-03-31 | $8.9B | $597.0M | $190.0M | $407.0M | 4.6% |
| 2025-06-30 | $11.2B | $1.3B | $364.0M | $955.0M | 8.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 60.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$19.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential operating cash flow recovery
Operating cash flow rose from the prior quarter, supporting a higher free cash flow despite increased capital expenditure. This driver partially offset the year-over-year decline in free cash flow.
The sequential improvement in operating cash flow strengthened free cash flow relative to the prior quarter, though year-over-year performance remained weaker.
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, while higher than the prior quarter, was lower than the year-ago quarter. Capital expenditure increased versus both periods, resulting in free cash flow that was higher than the prior quarter but lower than the year-ago quarter. Free cash flow margin improved from the prior quarter but declined from the year-ago quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow all increased, and free cash flow margin improved. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow were lower, and capital expenditure was higher, leading to a weakened free cash flow margin.
Monitor the trend in free cash flow margin given the increase in capital expenditure relative to operating cash flow.