Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased slightly from the prior quarter but increased year over year. Operating cash flow turned positive, leading to a strong free cash flow margin.
- With revenue relatively stable, operating cash flow improved significantly from a negative prior quarter to a positive figure, while capital expenditure remained modest. This resulted in a free cash flow margin that was positive and higher than both the prior quarter and the year-ago period.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow improved from negative to positive, and the margin turned positive. Versus the same quarter a year ago, all metrics improved, with revenue higher and free cash flow margin higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$59.0M
Capital spending and related asset purchases.
FCF margin
23.1%
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 | $5.7B | $1.9B | $73.0M | $1.8B | 32.3% |
| 2024-12-31 | $6.1B | $2.0B | $76.0M | $1.9B | 31.0% |
| 2025-03-31 | $7.1B | -$622.0M | $55.0M | -$677.0M | -9.6% |
| 2025-06-30 | $7.0B | $1.7B | $59.0M | $1.6B | 23.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 133.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$17.9B | 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 from a negative position in the prior quarter to a positive figure, driving a substantial improvement in free cash flow and margin.
This recovery was the primary factor behind the strong free cash flow performance in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue relatively stable, operating cash flow improved significantly from a negative prior quarter to a positive figure, while capital expenditure remained modest. This resulted in a free cash flow margin that was positive and higher than both the prior quarter and the year-ago period.
Compared to the immediately preceding quarter, operating cash flow and free cash flow improved from negative to positive, and the margin turned positive. Versus the same quarter a year ago, all metrics improved, with revenue higher and free cash flow margin higher.
One concrete item to monitor is the sustainability of the positive operating cash flow, given the negative figure in the prior quarter.