Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the preceding quarter and the same quarter one year ago. The free cash flow margin widened, reflecting a greater proportion of revenue converted into free cash flow.
- Operating cash flow increased relative to revenue, and capital expenditure was stable in proportion, resulting in a higher free cash flow margin. The conversion from operating cash flow to free cash flow was strong.
- Compared to the prior quarter, free cash flow margin rose from a lower level, and all key metrics were higher. Versus the same quarter last year, the margin also improved, with revenue, operating cash flow, and free cash flow all increasing.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$22.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$6.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.7B
Cash generated by operations before capital spending.
CapEx
$421.0M
Capital spending and related asset purchases.
FCF margin
62.0%
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 | $9.6B | $6.7B | $309.0M | $6.4B | 66.1% |
| 2024-12-31 | $9.5B | $5.4B | $345.0M | $5.1B | 53.1% |
| 2025-03-31 | $9.6B | $4.7B | $327.0M | $4.4B | 45.5% |
| 2025-06-30 | $10.2B | $6.7B | $421.0M | $6.3B | 62.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 119.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.0B | 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 growth
Operating cash flow increased more than revenue in both comparative periods, which was the strongest observable driver behind the higher free cash flow and margin.
This driver directly lifted free cash flow and improved the conversion rate from revenue to 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 relative to revenue, and capital expenditure was stable in proportion, resulting in a higher free cash flow margin. The conversion from operating cash flow to free cash flow was strong.
Compared to the prior quarter, free cash flow margin rose from a lower level, and all key metrics were higher. Versus the same quarter last year, the margin also improved, with revenue, operating cash flow, and free cash flow all increasing.
Monitor the trend in capital expenditure relative to cash flow, as its proportion remained roughly stable despite changes in revenue and cash generation.