Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved sharply from the prior quarter and also increased from the same quarter last year. The gain was driven by a larger sequential increase in operating cash flow relative to revenue, while capital expenditure declined.
- Revenue rose moderately versus the prior quarter, while operating cash flow expanded at a faster pace, leading to a higher free cash flow margin. Capital expenditure was lower in both sequential and year-ago comparisons, further supporting free cash flow conversion.
- Compared to the immediately preceding quarter, free cash flow and its margin both improved meaningfully. Versus the same quarter one year earlier, free cash flow and margin were higher, supported by stronger operating cash flow relative to revenue growth.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$60.0M
Capital spending and related asset purchases.
FCF margin
44.3%
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 | $3.0B | $898.0M | $79.0M | $819.0M | 27.0% |
| 2024-12-31 | $3.0B | $1.5B | $194.0M | $1.3B | 43.3% |
| 2025-03-31 | $3.2B | $966.0M | $85.0M | $881.0M | 27.3% |
| 2025-06-30 | $3.3B | $1.5B | $60.0M | $1.4B | 44.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 169.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$18.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Cash Flow Conversion Strength
Operating cash flow increased at a faster rate than revenue from the prior quarter, and capital expenditure declined, resulting in a notably higher free cash flow margin. This represents the strongest observable driver of the quarter's performance.
The combined effect of higher cash generation and lower spending produced a substantial improvement in free cash flow and its margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose moderately versus the prior quarter, while operating cash flow expanded at a faster pace, leading to a higher free cash flow margin. Capital expenditure was lower in both sequential and year-ago comparisons, further supporting free cash flow conversion.
Compared to the immediately preceding quarter, free cash flow and its margin both improved meaningfully. Versus the same quarter one year earlier, free cash flow and margin were higher, supported by stronger operating cash flow relative to revenue growth.
Monitor the trajectory of revenue growth relative to operating cash flow to assess sustainability of the margin expansion.