Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow rose sequentially, and free cash flow improved sharply as capital expenditure increased moderately. Operating cash flow and free cash flow also rose compared with the same quarter last year.
- Operating cash flow as a share of revenue increased relative to both the prior quarter and the year-ago quarter, supporting a higher free cash flow margin despite higher capital expenditure.
- Compared with the immediately preceding quarter, revenue was slightly higher and operating cash flow was substantially higher, leading to a much higher free cash flow. Compared with the same quarter one year earlier, revenue was higher, operating cash flow was higher, and free cash flow was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$928.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$183.0M
Capital spending and related asset purchases.
FCF margin
15.4%
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 | $5.5B | $1.5B | $170.0M | $1.3B | 23.7% |
| 2024-12-31 | $6.4B | $1.9B | $266.0M | $1.7B | 25.9% |
| 2025-03-31 | $5.9B | $250.0M | $123.0M | $127.0M | 2.2% |
| 2025-06-30 | $6.0B | $1.1B | $183.0M | $928.0M | 15.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 105.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$14.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong operating cash flow improvement
Operating cash flow rose sequentially and year over year, driving the largest share of the free cash flow increase. The improvement occurred even as revenue grew modestly, indicating a higher conversion rate.
Free cash flow margin rose dramatically versus both comparison periods, mainly due to the operating cash flow increase.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue increased relative to both the prior quarter and the year-ago quarter, supporting a higher free cash flow margin despite higher capital expenditure.
Compared with the immediately preceding quarter, revenue was slightly higher and operating cash flow was substantially higher, leading to a much higher free cash flow. Compared with the same quarter one year earlier, revenue was higher, operating cash flow was higher, and free cash flow was higher.
Monitor capital expenditure trends relative to operating cash flow, as the sequential increase in spending could temper free cash flow conversion.