Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, revenue increased compared to both the prior quarter and the same period last year. Operating cash flow turned strongly positive from a negative position in the previous quarter, driving a substantial improvement in free cash flow and free cash flow margin, though both remained below the year-ago level.
- Operating cash flow converted from a deficit to a substantial surplus, more than offsetting capital expenditure which edged lower sequentially. The resulting free cash flow margin rose sharply from the prior quarter's negative level, reflecting stronger cash generation relative to revenue.
- Compared to the prior quarter, every cash flow metric improved markedly, with operating cash flow and free cash flow shifting from negative to positive. Versus the same quarter last year, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower, indicating a year-over-year weakening in cash conversion efficiency.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.4B
Cash generated by operations before capital spending.
CapEx
$356.0M
Capital spending and related asset purchases.
FCF margin
30.1%
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 | $9.9B | $3.3B | $379.0M | $3.0B | 29.9% |
| 2024-12-31 | $9.7B | $4.0B | $278.0M | $3.7B | 38.4% |
| 2025-03-31 | $9.3B | -$350.0M | $404.0M | -$754.0M | -8.1% |
| 2025-06-30 | $10.1B | $3.4B | $356.0M | $3.1B | 30.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 100.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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
The most observable driver this quarter was the sharp turnaround in operating cash flow from a deficit to a substantial surplus. This reversal alone accounted for the entire swing in free cash flow, as capital expenditure remained relatively stable sequentially.
The recovery in operating cash flow restored free cash flow to a positive level and lifted the free cash flow margin well above the prior quarter’s negative figure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow converted from a deficit to a substantial surplus, more than offsetting capital expenditure which edged lower sequentially. The resulting free cash flow margin rose sharply from the prior quarter's negative level, reflecting stronger cash generation relative to revenue.
Compared to the prior quarter, every cash flow metric improved markedly, with operating cash flow and free cash flow shifting from negative to positive. Versus the same quarter last year, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower, indicating a year-over-year weakening in cash conversion efficiency.
Monitor whether the strong operating cash flow can be sustained, given the volatility observed between the prior quarter’s negative position and the current quarter’s positive swing.