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 free cash flow margin improved from the prior quarter but weakened compared to the year-ago period.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow turned positive from a negative prior quarter but was lower than the year-ago quarter. Capital expenditure was lower than both comparison periods. Free cash flow and free cash flow margin improved from the prior quarter but weakened compared to the year-ago quarter.
- Compared to the prior quarter, revenue increased, operating cash flow improved from negative to positive, capital expenditure decreased, and free cash flow turned positive. Compared to the same quarter last year, revenue was slightly higher, operating cash flow was lower, capital expenditure 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
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$637.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$868.0M
Cash generated by operations before capital spending.
CapEx
$231.0M
Capital spending and related asset purchases.
FCF margin
6.2%
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 | $10.0B | $1.1B | $361.0M | $730.0M | 7.3% |
| 2024-12-31 | $10.7B | $2.6B | $816.0M | $1.8B | 16.5% |
| 2025-03-31 | $9.5B | -$1.6B | $256.0M | -$1.8B | -19.2% |
| 2025-06-30 | $10.4B | $868.0M | $231.0M | $637.0M | 6.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 54.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.8B | 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 improved from a negative prior quarter to a positive amount in the current quarter, which was the strongest observable driver of the free cash flow turnaround.
This recovery directly enabled free cash flow to turn positive despite lower capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow turned positive from a negative prior quarter but was lower than the year-ago quarter. Capital expenditure was lower than both comparison periods. Free cash flow and free cash flow margin improved from the prior quarter but weakened compared to the year-ago quarter.
Compared to the prior quarter, revenue increased, operating cash flow improved from negative to positive, capital expenditure decreased, and free cash flow turned positive. Compared to the same quarter last year, revenue was slightly higher, operating cash flow was lower, capital expenditure was lower, and free cash flow was lower.
Monitor whether operating cash flow can sustain its positive level after the prior quarter's negative result.