Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially but declined from the same quarter last year, reflecting changes in operating cash flow and capital expenditure. Revenue was higher than both comparison periods, while operating cash flow showed mixed trends.
- Revenue increased compared to both the prior quarter and the year-ago quarter. Operating cash flow rose from the prior quarter but fell short of the year-ago level. Capital expenditure was slightly higher than both periods. Consequently, free cash flow and free cash flow margin improved sequentially but weakened relative to the prior year.
- Compared to the immediately preceding quarter, free cash flow and margin were higher, driven by a stronger operating cash flow despite a modest increase in capital expenditure. Compared to the same quarter one year earlier, free cash flow and margin were lower, as operating cash flow was lower and capital expenditure was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$702.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$983.0M
Cash generated by operations before capital spending.
CapEx
$281.0M
Capital spending and related asset purchases.
FCF margin
7.2%
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 | $847.0M | $215.0M | $632.0M | 6.6% |
| 2024-12-31 | $10.0B | $2.7B | $286.0M | $2.4B | 24.2% |
| 2025-03-31 | $9.0B | $553.0M | $251.0M | $302.0M | 3.4% |
| 2025-06-30 | $9.8B | $983.0M | $281.0M | $702.0M | 7.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 44.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$29.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Operating Cash Flow Improvement
Operating cash flow increased from the prior quarter, which was the primary factor behind the higher free cash flow and margin. This improvement occurred despite a small rise in capital expenditure, indicating stronger cash conversion from revenue in the current quarter.
The sequential improvement in operating cash flow drove free cash flow higher, partially reversing the year-over-year decline seen in the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to both the prior quarter and the year-ago quarter. Operating cash flow rose from the prior quarter but fell short of the year-ago level. Capital expenditure was slightly higher than both periods. Consequently, free cash flow and free cash flow margin improved sequentially but weakened relative to the prior year.
Compared to the immediately preceding quarter, free cash flow and margin were higher, driven by a stronger operating cash flow despite a modest increase in capital expenditure. Compared to the same quarter one year earlier, free cash flow and margin were lower, as operating cash flow was lower and capital expenditure was slightly higher.
Monitor the trajectory of operating cash flow relative to the prior year, as the decline from the year-ago quarter may signal a shift in cash generation. The filing also describes a debt bridge loan facility and other liquidity sources that could influence future cash flows.