Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned negative, driving free cash flow deeply negative despite higher revenue. The cash conversion weakened sharply compared with the prior quarter and improved versus the same quarter last year.
- Revenue increased, but operating cash flow shifted from positive to negative, resulting in a negative free cash flow and a negative free cash flow margin. Capital expenditure was higher than the prior quarter, further weighing on free cash flow.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow both weakened, and the free cash flow margin turned negative. Versus the same quarter one year earlier, operating cash flow and free cash flow improved, and the free cash flow margin was less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$582.0M
Cash generated by operations before capital spending.
CapEx
$618.0M
Capital spending and related asset purchases.
FCF margin
-8.2%
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 |
|---|---|---|---|---|---|
| 2024-09-29 | $17.7B | $6.7B | $651.0M | $6.1B | 34.3% |
| 2024-12-31 | $17.8B | $6.7B | $917.0M | $5.8B | 32.7% |
| 2025-03-30 | $13.7B | $2.3B | $564.0M | $1.8B | 12.9% |
| 2025-06-29 | $14.7B | -$582.0M | $618.0M | -$1.2B | -8.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -41.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$60.2B | 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 Swing
Operating cash flow moved from a positive amount in the prior quarter to a negative amount in the current quarter, despite higher revenue. This swing is the strongest observable driver of the negative free cash flow.
The negative operating cash flow directly caused free cash flow to be negative, reversing the positive free cash flow seen in the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, but operating cash flow shifted from positive to negative, resulting in a negative free cash flow and a negative free cash flow margin. Capital expenditure was higher than the prior quarter, further weighing on free cash flow.
Compared with the immediately preceding quarter, operating cash flow and free cash flow both weakened, and the free cash flow margin turned negative. Versus the same quarter one year earlier, operating cash flow and free cash flow improved, and the free cash flow margin was less negative.
Monitor whether operating cash flow can return to positive levels in the coming quarter, as the current negative swing is the primary driver of the free cash flow deficit.