Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow increased compared to both the prior quarter and the same quarter last year, leading to higher free cash flow and an improved margin. The company’s filing discusses forward-looking statements and risk factors including trade conflicts, tariffs, and currency fluctuations.
- Operating cash flow as a percentage of revenue was higher than the prior year, while capital expenditure also increased. The resulting free cash flow margin improved sequentially and year over year.
- Compared to the prior quarter, revenue increased while operating cash flow was stable, leading to a slight improvement in free cash flow margin. Versus the same quarter last year, all metrics improved, with free cash flow showing the largest relative gain.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$954.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$1.3B
Capital spending and related asset purchases.
FCF margin
11.2%
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 | $8.4B | $2.7B | $1.1B | $1.7B | 19.9% |
| 2024-12-31 | $8.3B | $2.8B | $1.3B | $1.6B | 18.8% |
| 2025-03-31 | $8.1B | $2.2B | $1.3B | $891.0M | 11.0% |
| 2025-06-30 | $8.5B | $2.2B | $1.3B | $954.0M | 11.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 54.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.3B | 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 Growth
Operating cash flow increased compared to the same quarter last year, while capital expenditure also rose but at a smaller relative impact, resulting in higher free cash flow.
Free cash flow margin improved to a higher level than the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue was higher than the prior year, while capital expenditure also increased. The resulting free cash flow margin improved sequentially and year over year.
Compared to the prior quarter, revenue increased while operating cash flow was stable, leading to a slight improvement in free cash flow margin. Versus the same quarter last year, all metrics improved, with free cash flow showing the largest relative gain.
Monitor the trend in capital expenditure relative to operating cash flow, as capex rose year over year while operating cash flow also increased.