Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as operating cash flow rose, though the margin weakened compared to the prior year. The company's cash conversion strengthened relative to the preceding quarter.
- Revenue conversion into operating cash flow improved sequentially, driving a higher free cash flow margin. Capital expenditure was lower than the prior year, which supported free cash flow despite a lower operating cash flow compared to that period.
- Compared to the preceding quarter, revenue was lower but cash generation improved, resulting in a higher free cash flow margin. Versus the same quarter last year, revenue was higher, yet operating cash flow and free cash flow were lower, leading to a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$11.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.9B
Cash generated by operations before capital spending.
CapEx
$294.0M
Capital spending and related asset purchases.
FCF margin
24.9%
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 | $10.2B | $2.6B | $256.0M | $2.4B | 23.3% |
| 2024-12-29 | $11.7B | $4.6B | $277.0M | $4.3B | 36.9% |
| 2025-03-30 | $11.0B | $2.6B | $214.0M | $2.3B | 21.3% |
| 2025-06-29 | $10.4B | $2.9B | $294.0M | $2.6B | 24.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 96.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.3B | 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 Strength
The sequential improvement in free cash flow was driven by a higher operating cash flow, which offset an increase in capital expenditure.
This strengthened cash generation provides internal funding capacity for strategic initiatives.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue conversion into operating cash flow improved sequentially, driving a higher free cash flow margin. Capital expenditure was lower than the prior year, which supported free cash flow despite a lower operating cash flow compared to that period.
Compared to the preceding quarter, revenue was lower but cash generation improved, resulting in a higher free cash flow margin. Versus the same quarter last year, revenue was higher, yet operating cash flow and free cash flow were lower, leading to a weakened margin.
Monitor the cash position and capital allocation given the restricted cash set aside for the pending acquisition.