Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was positive but narrow, pressured by elevated capital spending relative to operating cash generation. Revenue and operating cash flow both improved sequentially, yet the year-ago comparison shows a decline in both top-line and cash conversion efficiency.
- The free cash flow margin was low as capital expenditure consumed the majority of operating cash flow, resulting in thin residual free cash flow despite solid revenue and operating cash flow levels.
- Compared to the prior quarter, revenue and operating cash flow were higher, but free cash flow was lower due to a larger increase in capital expenditure. Relative to the same period one year earlier, revenue, operating cash flow, and free cash flow were all lower, reflecting a weakened cash conversion profile.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$146.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$2.4B
Capital spending and related asset purchases.
FCF margin
0.6%
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 | $25.2B | $6.3B | $3.5B | $2.7B | 10.9% |
| 2024-12-31 | $25.7B | $4.8B | $2.8B | $2.0B | 7.9% |
| 2025-03-31 | $19.3B | $2.2B | $1.5B | $664.0M | 3.4% |
| 2025-06-30 | $22.5B | $2.5B | $2.4B | $146.0M | 0.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 12.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | $10.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Spending Expansion
Capital expenditure rose notably from the prior quarter and remained similar to the year-ago level, absorbing a large share of operating cash flow and compressing free cash flow.
The increase in capital expenditure was the strongest observable factor reducing free cash flow compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The free cash flow margin was low as capital expenditure consumed the majority of operating cash flow, resulting in thin residual free cash flow despite solid revenue and operating cash flow levels.
Compared to the prior quarter, revenue and operating cash flow were higher, but free cash flow was lower due to a larger increase in capital expenditure. Relative to the same period one year earlier, revenue, operating cash flow, and free cash flow were all lower, reflecting a weakened cash conversion profile.
Monitor whether capital expenditure levels persist at the current elevated proportion relative to operating cash flow, as this directly determines free cash flow outcomes.