Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive in the current quarter after a negative prior quarter, though it remained lower than the same quarter last year. The improvement was driven by a strong rebound in operating cash flow, while capital expenditure increased slightly.
- Revenue was lower than both the prior quarter and the same quarter last year, but operating cash flow improved significantly from a negative level in the prior quarter to a positive figure, though it remained below the year-ago level. Capital expenditure was slightly higher than the prior quarter and moderately higher than the year-ago quarter, resulting in free cash flow turning positive from negative sequentially, but remaining lower year over year. The free cash flow margin improved from negative to positive sequentially but weakened compared to the same quarter last year.
- Compared to the prior quarter, revenue was higher, operating cash flow improved from negative to positive, and free cash flow turned positive from negative. Compared to the same quarter last year, revenue was lower, operating cash flow was lower, and free cash flow was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.6B
Cash generated by operations before capital spending.
CapEx
$695.0M
Capital spending and related asset purchases.
FCF margin
5.8%
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 | $35.1B | $1.7B | $651.0M | $1.0B | 2.9% |
| 2024-12-31 | $33.1B | $2.2B | $810.0M | $1.4B | 4.2% |
| 2025-03-31 | $31.5B | -$64.0M | $663.0M | -$727.0M | -2.3% |
| 2025-06-30 | $33.8B | $2.6B | $695.0M | $1.9B | 5.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 159.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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 Recovery
Operating cash flow rebounded strongly from a negative figure in the prior quarter to a positive amount, driving the free cash flow swing. This recovery occurred despite revenue being lower than the year-ago quarter.
The improvement in operating cash flow was the strongest observable driver, enabling free cash flow to turn positive sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the same quarter last year, but operating cash flow improved significantly from a negative level in the prior quarter to a positive figure, though it remained below the year-ago level. Capital expenditure was slightly higher than the prior quarter and moderately higher than the year-ago quarter, resulting in free cash flow turning positive from negative sequentially, but remaining lower year over year. The free cash flow margin improved from negative to positive sequentially but weakened compared to the same quarter last year.
Compared to the prior quarter, revenue was higher, operating cash flow improved from negative to positive, and free cash flow turned positive from negative. Compared to the same quarter last year, revenue was lower, operating cash flow was lower, and free cash flow was lower.
Monitor the trend in operating cash flow, as its recovery from a negative level was the primary factor behind the swing to positive free cash flow.