Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow turned positive compared to the same quarter last year but declined sharply from the prior quarter. The free cash flow margin weakened substantially from the previous quarter despite higher revenue.
- Revenue increased from the prior quarter, yet operating cash flow decreased significantly, resulting in a much lower free cash flow and a weakened cash conversion margin.
- Compared to the immediately preceding quarter, free cash flow and margin were lower. Compared to the same quarter one year earlier, free cash flow improved from negative to positive, and margin turned positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$173.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$205.0M
Cash generated by operations before capital spending.
CapEx
$32.0M
Capital spending and related asset purchases.
FCF margin
2.8%
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 | $6.3B | $2.6B | $31.0M | $2.6B | 41.2% |
| 2024-12-31 | $6.0B | $3.3B | $47.0M | $3.3B | 55.1% |
| 2025-03-31 | $5.3B | $2.7B | $38.0M | $2.7B | 51.0% |
| 2025-06-30 | $6.1B | $205.0M | $32.0M | $173.0M | 2.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 7.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$23.4B | 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 Volatility
Operating cash flow decreased sharply from the prior quarter even as revenue rose, leading to a much lower free cash flow.
The significant drop in operating cash flow was the primary factor behind the weakened free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, yet operating cash flow decreased significantly, resulting in a much lower free cash flow and a weakened cash conversion margin.
Compared to the immediately preceding quarter, free cash flow and margin were lower. Compared to the same quarter one year earlier, free cash flow improved from negative to positive, and margin turned positive.
Monitor the level of operating cash flow given its large swing from the prior quarter.