Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased from the prior quarter but increased compared to the same quarter last year. Operating cash flow and free cash flow improved sequentially, though both were lower than the year-ago period.
- Cash conversion strengthened from the prior quarter as operating cash flow rose and capital expenditure fell, resulting in a higher free cash flow margin. Relative to the year-ago quarter, cash conversion weakened due to lower operating cash flow and higher capital spending.
- Compared to the prior quarter, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter last year, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$647.0M
Capital spending and related asset purchases.
FCF margin
27.8%
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 | $3.3B | $1.2B | $657.0M | $592.0M | 18.0% |
| 2024-12-31 | $3.6B | $1.5B | $772.0M | $738.0M | 20.7% |
| 2025-03-31 | $3.9B | $1.2B | $766.0M | $396.0M | 10.3% |
| 2025-06-30 | $3.6B | $1.6B | $647.0M | $1.0B | 27.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 140.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$32.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Free Cash Flow
Free cash flow improved from the prior quarter, driven by higher operating cash flow and lower capital expenditures. However, it was lower than the same quarter last year.
The sequential improvement in free cash flow indicates better cash generation efficiency, while the year-over-year decline warrants attention.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion strengthened from the prior quarter as operating cash flow rose and capital expenditure fell, resulting in a higher free cash flow margin. Relative to the year-ago quarter, cash conversion weakened due to lower operating cash flow and higher capital spending.
Compared to the prior quarter, revenue was lower, but operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter last year, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower.
Monitor the trend in capital expenditure, which decreased from the prior quarter but remained above the year-ago level.