Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter but lower than the same quarter last year. Free cash flow improved sharply from the prior quarter but was lower than the year-ago quarter.
- Operating cash flow increased significantly from the prior quarter, while capital expenditure decreased slightly, resulting in a much higher free cash flow and an improved free cash flow margin. Compared to the same quarter last year, operating cash flow and free cash flow were both lower, and the margin weakened.
- Compared to the prior quarter, free cash flow and free cash flow margin improved substantially, driven by higher operating cash flow. Versus the same quarter last year, revenue, 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
$4.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$771.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$371.0M
Capital spending and related asset purchases.
FCF margin
9.0%
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 | $9.2B | $2.4B | $460.0M | $2.0B | 21.7% |
| 2024-12-31 | $9.3B | $2.4B | $609.0M | $1.8B | 19.2% |
| 2025-03-31 | $8.5B | $660.0M | $398.0M | $262.0M | 3.1% |
| 2025-06-30 | $8.5B | $1.1B | $371.0M | $771.0M | 9.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 76.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | 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
Operating cash flow increased substantially from the prior quarter, more than offsetting a slight decrease in capital expenditure. This was the strongest observable driver of the improvement in free cash flow.
The higher operating cash flow directly lifted free cash flow and the free cash flow margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased significantly from the prior quarter, while capital expenditure decreased slightly, resulting in a much higher free cash flow and an improved free cash flow margin. Compared to the same quarter last year, operating cash flow and free cash flow were both lower, and the margin weakened.
Compared to the prior quarter, free cash flow and free cash flow margin improved substantially, driven by higher operating cash flow. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and margin were all lower.
Monitor the trend in operating cash flow, as it is the primary driver of free cash flow changes.