Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was higher than both the prior quarter and the year-ago quarter, supported by higher operating cash flow and lower capital expenditure. The free cash flow margin improved compared to both periods.
- Revenue was higher than the prior quarter and the year-ago quarter. Operating cash flow increased relative to both periods, while capital expenditure was lower than both, resulting in higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, revenue was higher, operating cash flow was higher, capital expenditure was lower, free cash flow was higher, and the free cash flow margin improved. Versus the year-ago quarter, all metrics showed the same directional changes: revenue higher, operating cash flow higher, capital expenditure lower, free cash flow higher, and margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$674.0M
Capital spending and related asset purchases.
FCF margin
32.2%
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 | $4.6B | $1.6B | $877.0M | $771.0M | 16.7% |
| 2024-12-31 | $5.7B | $2.5B | $875.0M | $1.6B | 28.9% |
| 2025-03-31 | $5.0B | $2.0B | $826.0M | $1.2B | 24.1% |
| 2025-06-30 | $5.3B | $2.4B | $674.0M | $1.7B | 32.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 83.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$947.0M | 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 Growth
Operating cash flow was higher than both the prior quarter and the year-ago quarter, providing the primary support for the improvement in free cash flow.
The increase in operating cash flow was the strongest observable factor behind the higher free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter and the year-ago quarter. Operating cash flow increased relative to both periods, while capital expenditure was lower than both, resulting in higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, revenue was higher, operating cash flow was higher, capital expenditure was lower, free cash flow was higher, and the free cash flow margin improved. Versus the year-ago quarter, all metrics showed the same directional changes: revenue higher, operating cash flow higher, capital expenditure lower, free cash flow higher, and margin improved.
Monitor capital expenditure levels, as they were lower than both prior periods and could influence future free cash flow.