Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company generated higher free cash flow and an improved margin compared to both the prior quarter and the same quarter last year. Revenue increased, while operating cash flow rose more than capital spending, lifting the free cash flow margin.
- Revenue increased, operating cash flow increased, and capital expenditure also increased, but the rise in operating cash flow outpaced the increase in capital spending, resulting in higher free cash flow and a wider free cash flow margin.
- Compared to the prior quarter, free cash flow and margin were higher, driven by a larger increase in operating cash flow relative to a modest increase in capital expenditure. Versus the same quarter one year earlier, free cash flow and margin both improved substantially, with operating cash flow rising while capital spending remained relatively stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.3B
Cash generated by operations before capital spending.
CapEx
$936.0M
Capital spending and related asset purchases.
FCF margin
22.7%
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 | $6.1B | $2.7B | $831.0M | $1.8B | 29.9% |
| 2024-12-31 | $6.1B | $2.7B | $922.0M | $1.7B | 28.4% |
| 2025-03-31 | $6.0B | $2.2B | $906.0M | $1.3B | 21.6% |
| 2025-06-30 | $6.2B | $2.3B | $936.0M | $1.4B | 22.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 74.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 15.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Growth
Operating cash flow increased compared to both the prior quarter and the same quarter last year, while capital spending rose only modestly, leading to a larger free cash flow and an improved margin.
This driver strengthened the company's free cash flow generation capacity for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, operating cash flow increased, and capital expenditure also increased, but the rise in operating cash flow outpaced the increase in capital spending, resulting in higher free cash flow and a wider free cash flow margin.
Compared to the prior quarter, free cash flow and margin were higher, driven by a larger increase in operating cash flow relative to a modest increase in capital expenditure. Versus the same quarter one year earlier, free cash flow and margin both improved substantially, with operating cash flow rising while capital spending remained relatively stable.
The company noted that the enactment of H.R.1, which includes bonus depreciation provisions, is expected to favorably impact future operating cash flows.