Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable across the current quarter, the prior quarter, and the same quarter last year. Operating cash flow and free cash flow both improved sequentially and year-over-year, resulting in a stronger free cash flow margin.
- With revenue unchanged, a higher operating cash flow more than offset a larger capital expenditure, yielding a higher free cash flow and an improved free cash flow margin compared to both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was stable while operating cash flow, free cash flow, and free cash flow margin were all higher; capital expenditure was slightly higher. Versus the same quarter one year earlier, the same directional improvements were observed, with operating cash flow and free cash flow higher and the margin stronger.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$971.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$244.0M
Capital spending and related asset purchases.
FCF margin
64.8%
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 | $1.5B | $892.9M | $186.4M | $706.5M | 47.7% |
| 2024-12-31 | $1.6B | $1.1B | $217.9M | $867.7M | 54.8% |
| 2025-03-31 | $1.5B | $827.2M | $230.2M | $597.0M | 40.5% |
| 2025-06-30 | $1.5B | $1.2B | $244.0M | $971.3M | 64.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 150.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 16.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$24.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger Operating Cash Flow
Operating cash flow rose from the prior quarter and from the year-ago quarter, outpacing the growth in capital expenditure. This was the primary factor behind the higher free cash flow and improved margin.
The stronger operating cash flow enabled free cash flow to reach a higher level and the free cash flow margin to improve compared to both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue unchanged, a higher operating cash flow more than offset a larger capital expenditure, yielding a higher free cash flow and an improved free cash flow margin compared to both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue was stable while operating cash flow, free cash flow, and free cash flow margin were all higher; capital expenditure was slightly higher. Versus the same quarter one year earlier, the same directional improvements were observed, with operating cash flow and free cash flow higher and the margin stronger.
Monitor the sustainability of the free cash flow margin improvement given the recent increase in capital expenditure.