Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved relative to the same quarter last year but weakened from the immediately preceding quarter. Revenue was higher than both prior periods, while operating cash flow was lower than the prior quarter but higher than a year ago.
- Revenue was higher than both comparison periods, yet free cash flow margin narrowed from the prior quarter due to a lower operating cash flow and higher capital expenditure. Operating cash flow was higher than a year ago, which supported a wider margin versus the same quarter last year.
- Compared with the prior quarter, free cash flow and margin were lower, driven by a decrease in operating cash flow and an increase in capital expenditure. Versus the same quarter a year earlier, free cash flow and margin were higher, supported by stronger operating cash flow despite higher capital spending.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$744.0M
Capital spending and related asset purchases.
FCF margin
18.3%
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 | $6.9B | $2.7B | $794.0M | $1.9B | 28.3% |
| 2024-12-31 | $6.4B | $2.6B | $807.0M | $1.8B | 28.6% |
| 2025-03-31 | $6.0B | $2.4B | $551.0M | $1.9B | 31.5% |
| 2025-06-30 | $6.8B | $2.0B | $744.0M | $1.3B | 18.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 55.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.9% | 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.
Capital Expenditure Increase
Capital expenditure rose from both the prior quarter and the same quarter last year, contributing to a lower free cash flow despite higher revenue. The filing context does not provide additional details on the nature of this spending.
Higher capital expenditure constrained free cash flow conversion and margin improvement in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both comparison periods, yet free cash flow margin narrowed from the prior quarter due to a lower operating cash flow and higher capital expenditure. Operating cash flow was higher than a year ago, which supported a wider margin versus the same quarter last year.
Compared with the prior quarter, free cash flow and margin were lower, driven by a decrease in operating cash flow and an increase in capital expenditure. Versus the same quarter a year earlier, free cash flow and margin were higher, supported by stronger operating cash flow despite higher capital spending.
Monitor the trend in capital expenditure, which increased from both the prior quarter and the same quarter last year.