Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all reached their highest levels among the three periods shown. The free cash flow margin, while lower than the same quarter last year, improved compared to the immediately preceding quarter.
- Operating cash flow as a share of revenue was stable compared to the preceding quarter, while capital expenditure rose slightly. As a result, free cash flow increased and the free cash flow margin improved sequentially, though it remained below the year-ago level.
- Compared to the preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, with free cash flow margin showing improvement. Versus the same quarter last year, revenue, operating cash flow, and capital expenditure were higher, while free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$71.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$25.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$42.6B
Cash generated by operations before capital spending.
CapEx
$17.1B
Capital spending and related asset purchases.
FCF margin
33.4%
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 | $65.6B | $34.2B | $14.9B | $19.3B | 29.4% |
| 2024-12-31 | $69.6B | $22.3B | $15.8B | $6.5B | 9.3% |
| 2025-03-31 | $70.1B | $37.0B | $16.7B | $20.3B | 29.0% |
| 2025-06-30 | $76.4B | $42.6B | $17.1B | $25.6B | 33.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 93.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 22.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Free Cash Flow
Free cash flow rose to the highest level among the three periods, supported by a sequential increase in operating cash flow and a modest rise in capital expenditure. The dollar amount of free cash flow was higher both sequentially and year-over-year.
Higher free cash flow provides increased financial flexibility compared to both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was stable compared to the preceding quarter, while capital expenditure rose slightly. As a result, free cash flow increased and the free cash flow margin improved sequentially, though it remained below the year-ago level.
Compared to the preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, with free cash flow margin showing improvement. Versus the same quarter last year, revenue, operating cash flow, and capital expenditure were higher, while free cash flow margin was lower.
Monitor the trajectory of capital expenditure relative to operating cash flow, as a sustained increase could pressure free cash flow conversion.