Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow increased compared with both the prior quarter and the same quarter last year. Free cash flow turned positive from a negative prior quarter, while the free cash flow margin was lower than the year-ago quarter.
- Operating cash flow increased from both the prior quarter and the year-ago quarter. Capital expenditure also rose, resulting in a free cash flow margin that improved from the prior quarter but was lower than the year-ago period.
- Compared with the prior quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow shifting from negative to positive. Relative to the year-ago quarter, revenue and operating cash flow were higher, while free cash flow was slightly higher and the margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$555.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$1.3B
Capital spending and related asset purchases.
FCF margin
12.5%
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 | $4.2B | $1.7B | $1.3B | $416.0M | 10.0% |
| 2024-12-31 | $4.0B | $2.0B | $1.2B | $806.0M | 20.1% |
| 2025-03-31 | $4.1B | $849.0M | $1.1B | -$274.0M | -6.7% |
| 2025-06-30 | $4.4B | $1.9B | $1.3B | $555.0M | 12.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 42.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 29.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.0B | 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 rose substantially from the prior quarter, reversing the previous negative free cash flow. The filing notes that cash flow from operations is the primary source of liquidity and that capital expenditures were primarily for semiconductor manufacturing equipment and facilities.
This recovery was the primary factor behind the quarter's positive free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased from both the prior quarter and the year-ago quarter. Capital expenditure also rose, resulting in a free cash flow margin that improved from the prior quarter but was lower than the year-ago period.
Compared with the prior quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow shifting from negative to positive. Relative to the year-ago quarter, revenue and operating cash flow were higher, while free cash flow was slightly higher and the margin was lower.
Capital expenditure, given its impact on the free cash flow margin relative to operating cash flow.