Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter, while free cash flow improved. Versus the same quarter last year, revenue was lower but free cash flow was higher.
- Operating cash flow rose relative to revenue, and capital expenditure increased at a slower pace, resulting in a higher free cash flow margin compared to both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow margin strengthening. Versus the same quarter last year, revenue was lower but free cash flow and margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$736.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.0B
Cash generated by operations before capital spending.
CapEx
$2.2B
Capital spending and related asset purchases.
FCF margin
11.6%
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 | $7.0B | $3.7B | $1.7B | $2.0B | 28.5% |
| 2024-12-31 | $2.2B | $3.4B | $1.0B | $2.3B | 108.0% |
| 2025-03-31 | $5.8B | $2.1B | $1.7B | $466.0M | 8.0% |
| 2025-06-30 | $6.3B | $3.0B | $2.2B | $736.0M | 11.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 157.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 35.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$20.7B | 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 increased compared to both the prior quarter and the year-ago quarter, supporting a higher free cash flow despite a rise in capital expenditure.
The improvement in operating cash flow was the primary factor behind the higher free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose relative to revenue, and capital expenditure increased at a slower pace, resulting in a higher free cash flow margin compared to both the prior quarter and the year-ago quarter.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow margin strengthening. Versus the same quarter last year, revenue was lower but free cash flow and margin were higher.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased from both comparison periods.