Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow increased sharply from the prior quarter, driving a substantial improvement in free cash flow and margin. Compared to the same quarter last year, revenue was higher but free cash flow was lower due to higher capital spending.
- Revenue was slightly lower than the prior quarter, while operating cash flow rose significantly, resulting in a much higher free cash flow and margin. Capital expenditure also increased, but the gain in operating cash flow more than offset the higher spending.
- Compared to the prior quarter, free cash flow and margin improved markedly. Versus the same quarter a year earlier, revenue was higher and operating cash flow was slightly higher, but capital expenditure was higher and free cash flow was lower, resulting in a lower margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$776.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$749.0M
Capital spending and related asset purchases.
FCF margin
9.8%
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 | $5.0B | $1.3B | $468.0M | $783.0M | 15.6% |
| 2024-12-31 | $7.0B | $1.6B | $562.0M | $1.0B | 15.0% |
| 2025-03-31 | $8.0B | $904.0M | $629.0M | $275.0M | 3.4% |
| 2025-06-30 | $7.9B | $1.5B | $749.0M | $776.0M | 9.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$31.2B | 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 rose substantially from the prior quarter, far outpacing the increase in capital expenditure. This was the primary factor behind the improvement in free cash flow and margin.
Higher operating cash flow enabled a significant increase in free cash flow margin relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter, while operating cash flow rose significantly, resulting in a much higher free cash flow and margin. Capital expenditure also increased, but the gain in operating cash flow more than offset the higher spending.
Compared to the prior quarter, free cash flow and margin improved markedly. Versus the same quarter a year earlier, revenue was higher and operating cash flow was slightly higher, but capital expenditure was higher and free cash flow was lower, resulting in a lower margin.
Monitor the cash flow impact of the Delaware Basin joint venture acquisition, which was completed during the quarter using cash and stock.