Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, but free cash flow turned negative. The decline in operating cash flow was the primary reason for the weakened cash conversion.
- Despite higher revenue, operating cash flow was sharply lower than both the immediate prior quarter and the year-ago quarter, while capital expenditure remained relatively stable. This resulted in a negative free cash flow and a negative free cash flow margin.
- Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, with free cash flow margin moving from positive to negative. Versus the same quarter last year, revenue was higher while operating cash flow, free cash flow, and margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$72.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$458.0M
Cash generated by operations before capital spending.
CapEx
$530.0M
Capital spending and related asset purchases.
FCF margin
-0.3%
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 | $20.1B | $2.5B | $552.0M | $2.0B | 9.8% |
| 2024-12-31 | $21.6B | $1.6B | $1.1B | $492.0M | 2.3% |
| 2025-03-31 | $20.3B | $1.3B | $513.0M | $792.0M | 3.9% |
| 2025-06-30 | $21.6B | $458.0M | $530.0M | -$72.0M | -0.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -4.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | 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 decline
Operating cash flow was substantially lower than the prior quarter and the year-ago quarter, even as revenue increased. This was the strongest observable factor behind the negative free cash flow.
Free cash flow turned negative, reversing from positive levels in both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow was sharply lower than both the immediate prior quarter and the year-ago quarter, while capital expenditure remained relatively stable. This resulted in a negative free cash flow and a negative free cash flow margin.
Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, with free cash flow margin moving from positive to negative. Versus the same quarter last year, revenue was higher while operating cash flow, free cash flow, and margin were all lower.
Monitor the relationship between revenue growth and operating cash flow, as the gap widened significantly this quarter.