Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened significantly compared to the prior quarter and the same quarter one year earlier, as revenue increased but operating cash flow fell sharply. The filing notes that the company’s disclosure controls were effective and there were no material changes in internal control over financial reporting.
- Revenue increased relative to both the prior quarter and the year-ago quarter, yet operating cash flow decreased, leading to substantially lower free cash flow and a narrower free cash flow margin. Capital expenditure was slightly lower than both periods, but the decline in operating cash flow was the dominant factor in the weakened conversion.
- Compared with the prior quarter, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was also higher, but operating cash flow, free cash flow, and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$210.0M
Capital spending and related asset purchases.
FCF margin
8.8%
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 | $15.0B | $2.9B | $286.0M | $2.6B | 17.3% |
| 2024-12-31 | $17.6B | $4.3B | $303.0M | $4.0B | 22.9% |
| 2025-03-31 | $14.5B | $4.4B | $244.0M | $4.1B | 28.4% |
| 2025-06-30 | $17.0B | $1.7B | $210.0M | $1.5B | 8.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 68.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | 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.
Sharp decline in operating cash flow
Operating cash flow decreased substantially compared to both the prior quarter and the year-ago quarter, even as revenue increased. This was the primary reason for the lower free cash flow and free cash flow margin.
The lower operating cash flow reduced free cash flow and margin, weakening the overall cash conversion profile for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased relative to both the prior quarter and the year-ago quarter, yet operating cash flow decreased, leading to substantially lower free cash flow and a narrower free cash flow margin. Capital expenditure was slightly lower than both periods, but the decline in operating cash flow was the dominant factor in the weakened conversion.
Compared with the prior quarter, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was also higher, but operating cash flow, free cash flow, and margin were lower.
Monitor the trajectory of operating cash flow in the coming quarters, given the sharp decline from both the prior quarter and the year-ago period.