Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow were both substantially higher than the prior quarter and the year-ago quarter, driven by a strong increase in revenue and a lower proportion of capital expenditure. The free cash flow margin improved markedly, reflecting more efficient cash conversion during the quarter.
- Revenue was higher compared to both the prior quarter and the year-ago quarter. Operating cash flow grew faster than revenue, leading to a meaningfully higher free cash flow margin. Capital expenditure was lower in absolute terms than both comparison periods, supporting the improvement in cash conversion.
- Free cash flow was higher than the immediately preceding quarter and the same quarter one year earlier. The free cash flow margin improved from both the prior quarter and the prior year quarter, while operating cash flow also increased sequentially and year-over-year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$16.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.6B
Cash generated by operations before capital spending.
CapEx
$40.0M
Capital spending and related asset purchases.
FCF margin
56.1%
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 | $7.4B | $5.1B | $107.0M | $5.0B | 68.2% |
| 2024-12-31 | $7.5B | $4.8B | $95.0M | $4.7B | 63.3% |
| 2025-03-31 | $7.3B | $2.4B | $159.0M | $2.2B | 30.6% |
| 2025-06-30 | $8.1B | $4.6B | $40.0M | $4.6B | 56.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 123.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong revenue growth with lower capital spending
Revenue was higher than both comparison periods, while capital expenditure was lower in dollar terms. This combination, together with operating cash flow that grew at a faster rate than revenue, resulted in a meaningfully higher free cash flow margin.
Free cash flow reached a level higher than both the prior quarter and the same quarter last year, with an improved margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher compared to both the prior quarter and the year-ago quarter. Operating cash flow grew faster than revenue, leading to a meaningfully higher free cash flow margin. Capital expenditure was lower in absolute terms than both comparison periods, supporting the improvement in cash conversion.
Free cash flow was higher than the immediately preceding quarter and the same quarter one year earlier. The free cash flow margin improved from both the prior quarter and the prior year quarter, while operating cash flow also increased sequentially and year-over-year.
Monitor whether the lower level of capital expenditure is sustained, as it directly supports free cash flow when revenue and operating cash flow are stable or growing.