Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned strongly positive from the prior quarter's negative level, driving a substantial free cash flow margin. Revenue was slightly higher than the same quarter last year, while free cash flow margin improved modestly.
- Revenue was higher than the prior quarter, and operating cash flow shifted from negative to positive, resulting in a positive free cash flow margin. Capital expenditure was higher than both the prior quarter and the year-ago quarter, but free cash flow still increased.
- Compared to the prior quarter, operating cash flow and free cash flow both improved from negative to positive, and the free cash flow margin strengthened significantly. Versus the same quarter last year, revenue was slightly higher, operating cash flow and free cash flow were higher, and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$722.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.8B
Cash generated by operations before capital spending.
CapEx
$442.0M
Capital spending and related asset purchases.
FCF margin
26.9%
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 |
|---|---|---|---|---|---|
| 2024-09-27 | $11.9B | -$1.3B | $469.0M | -$1.7B | -14.6% |
| 2024-12-31 | $11.5B | $4.0B | $803.0M | $3.1B | 27.3% |
| 2025-03-28 | $11.1B | -$5.2B | $309.0M | -$5.5B | -49.5% |
| 2025-06-27 | $12.5B | $3.8B | $442.0M | $3.4B | 26.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 88.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | 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.
Operating Cash Flow Recovery
Operating cash flow turned from a negative amount in the prior quarter to a positive amount this quarter, which was also higher than the year-ago quarter. This shift was the primary factor behind the improvement in free cash flow and margin.
The recovery in operating cash flow directly enabled a positive free cash flow margin after a negative margin in the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, and operating cash flow shifted from negative to positive, resulting in a positive free cash flow margin. Capital expenditure was higher than both the prior quarter and the year-ago quarter, but free cash flow still increased.
Compared to the prior quarter, operating cash flow and free cash flow both improved from negative to positive, and the free cash flow margin strengthened significantly. Versus the same quarter last year, revenue was slightly higher, operating cash flow and free cash flow were higher, and the free cash flow margin improved.
Monitor whether operating cash flow can sustain its positive level in the next quarter, given the large swing from the prior quarter.