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. However, free cash flow and free cash flow margin declined as capital expenditure rose substantially.
- Operating cash flow grew with revenue, but capital expenditure increased at a faster pace, leading to lower free cash flow and a weaker free cash flow margin.
- Compared to the preceding quarter, revenue and operating cash flow were higher while free cash flow and margin were lower. The same pattern held versus the year-ago quarter.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$50.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$9.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$25.6B
Cash generated by operations before capital spending.
CapEx
$16.5B
Capital spending and related asset purchases.
FCF margin
19.0%
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 | $40.6B | $24.7B | $8.3B | $16.5B | 40.6% |
| 2024-12-31 | $48.4B | $28.0B | $14.4B | $13.6B | 28.0% |
| 2025-03-31 | $42.3B | $24.0B | $12.9B | $11.1B | 26.2% |
| 2025-06-30 | $47.5B | $25.6B | $16.5B | $9.0B | 19.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 49.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 34.8% | 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 Growth
Capital expenditure increased significantly in the current quarter, outpacing the growth in operating cash flow.
This higher spending reduced free cash flow and margin despite improved revenue and operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew with revenue, but capital expenditure increased at a faster pace, leading to lower free cash flow and a weaker free cash flow margin.
Compared to the preceding quarter, revenue and operating cash flow were higher while free cash flow and margin were lower. The same pattern held versus the year-ago quarter.
The trajectory of capital expenditure relative to operating cash flow should be monitored for its impact on free cash flow generation.