Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus the preceding quarter, driven by higher operating cash flow that offset a modest increase in capital expenditure. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were lower despite higher revenue.
- Revenue was stable versus the prior quarter and higher year over year. Operating cash flow improved sharply from the prior quarter but declined from the year-ago quarter. The resulting free cash flow margin strengthened sequentially but weakened on an annual basis.
- Against the immediately preceding quarter, operating cash flow and free cash flow were higher, and free cash flow margin improved. Versus the same quarter one year earlier, operating cash flow, free cash flow, and free cash flow margin were all lower, even though revenue was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$61.0M
Capital spending and related asset purchases.
FCF margin
36.9%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $3.6B | $1.4B | $35.0M | $1.4B | 39.4% |
| 2024-12-31 | $3.6B | $1.7B | $33.0M | $1.7B | 47.5% |
| 2025-03-31 | $3.8B | $953.0M | $43.0M | $910.0M | 24.1% |
| 2025-06-30 | $3.8B | $1.4B | $61.0M | $1.4B | 36.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 129.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential operating cash flow improvement
The strongest observable driver was the increase in operating cash flow relative to the prior quarter, which directly lifted free cash flow and free cash flow margin, as capital expenditure increased only modestly.
This driver reversed the prior quarter's weaker cash conversion and restored free cash flow to a level closer to the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior quarter and higher year over year. Operating cash flow improved sharply from the prior quarter but declined from the year-ago quarter. The resulting free cash flow margin strengthened sequentially but weakened on an annual basis.
Against the immediately preceding quarter, operating cash flow and free cash flow were higher, and free cash flow margin improved. Versus the same quarter one year earlier, operating cash flow, free cash flow, and free cash flow margin were all lower, even though revenue was higher.
Monitor operating cash flow stability, as it improved sequentially but fell year over year, creating mixed trends in cash conversion.