Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow declined sharply from both the prior quarter and the same quarter last year, resulting in minimal free cash flow despite higher revenue than a year ago. The free cash flow margin fell to near zero, reflecting a significant weakening in cash conversion.
- Revenue was higher than a year ago but slightly lower than the prior quarter. Operating cash flow fell substantially, while capital expenditure increased from the prior quarter but decreased from a year ago. The combination produced free cash flow of only a small fraction of revenue, yielding a negligible margin.
- Compared to the prior quarter, operating cash flow and free cash flow were both significantly lower, while capital expenditure was higher. Versus the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower, and capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$308.0M
Cash generated by operations before capital spending.
CapEx
$305.0M
Capital spending and related asset purchases.
FCF margin
0.0%
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 | $9.2B | $1.3B | $316.0M | $989.0M | 10.7% |
| 2024-12-31 | $9.6B | $1.5B | $405.0M | $1.1B | 11.0% |
| 2025-03-31 | $9.3B | $1.1B | $277.0M | $815.0M | 8.8% |
| 2025-06-30 | $9.0B | $308.0M | $305.0M | $3.0M | 0.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 0.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | 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 Decline
Operating cash flow dropped sharply from both the prior quarter and the year-ago period, far outpacing the change in revenue. This drove free cash flow to a minimal level.
If operating cash flow does not recover, free cash flow generation will remain constrained.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than a year ago but slightly lower than the prior quarter. Operating cash flow fell substantially, while capital expenditure increased from the prior quarter but decreased from a year ago. The combination produced free cash flow of only a small fraction of revenue, yielding a negligible margin.
Compared to the prior quarter, operating cash flow and free cash flow were both significantly lower, while capital expenditure was higher. Versus the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower, and capital expenditure was lower.
Monitor the trajectory of operating cash flow, as its sharp decline was the primary factor behind the near-zero free cash flow.