Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved relative to the prior quarter, but free cash flow remained negative due to ongoing capital expenditure. Revenue was broadly stable compared to both the prior quarter and the same quarter a year earlier.
- Revenue was stable, operating cash flow turned positive compared to the prior quarter's operating cash flow, yet capital expenditure continued to exceed operating cash flow, resulting in a negative free cash flow and a weakened free cash flow margin.
- Compared with the immediately preceding quarter, free cash flow was less negative and the free cash flow margin improved, while operating cash flow was significantly higher and capital expenditure was lower. Versus the same quarter one year earlier, operating cash flow was slightly lower and capital expenditure was lower, with free cash flow less negative and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$10.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$3.5B
Capital spending and related asset purchases.
FCF margin
-11.7%
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 |
|---|---|---|---|---|---|
| 2024-09-28 | $13.3B | $4.1B | $6.5B | -$2.4B | -18.1% |
| 2024-12-28 | $14.3B | $3.2B | $5.8B | -$2.7B | -18.7% |
| 2025-03-29 | $12.7B | $813.0M | $5.2B | -$4.4B | -34.5% |
| 2025-06-28 | $12.9B | $2.0B | $3.5B | -$1.5B | -11.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 51.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 27.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$41.1B | 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 Reduction
Capital expenditure decreased compared to both the prior quarter and the year-ago quarter, narrowing the gap with operating cash flow and reducing the free cash outflow. This was the strongest observable driver of the improvement in free cash flow.
Lower capital expenditure directly lessened the negative free cash flow, even as operating cash flow showed mixed trends against the comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, operating cash flow turned positive compared to the prior quarter's operating cash flow, yet capital expenditure continued to exceed operating cash flow, resulting in a negative free cash flow and a weakened free cash flow margin.
Compared with the immediately preceding quarter, free cash flow was less negative and the free cash flow margin improved, while operating cash flow was significantly higher and capital expenditure was lower. Versus the same quarter one year earlier, operating cash flow was slightly lower and capital expenditure was lower, with free cash flow less negative and the margin improved.
Monitor whether capital expenditure can be reduced further relative to operating cash flow to achieve positive free cash flow.