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 sequentially and year-over-year. Free cash flow margin improved significantly from both the prior quarter and the same quarter last year.
- Operating cash flow rose while capital expenditure declined sequentially, leading to a higher free cash flow and a stronger free cash flow margin. The cash conversion rate improved relative to the prior quarter and the year-ago period.
- Compared to the prior quarter, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow margin improved. Compared to the same quarter last year, all metrics were higher except capital expenditure which was higher but free cash flow margin still improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$813.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$732.0M
Capital spending and related asset purchases.
FCF margin
12.6%
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 | $5.6B | $1.4B | $781.0M | $577.0M | 10.3% |
| 2024-12-31 | $5.9B | $1.5B | $1.1B | $396.0M | 6.7% |
| 2025-03-31 | $6.0B | $1.2B | $831.0M | $377.0M | 6.3% |
| 2025-06-30 | $6.4B | $1.5B | $732.0M | $813.0M | 12.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 112.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.4% | 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 expenditure was lower than the prior quarter. This drove the improvement in free cash flow and margin.
The higher operating cash flow strengthens the company's ability to fund dividends, investments, and strategic initiatives per its liquidity discussion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose while capital expenditure declined sequentially, leading to a higher free cash flow and a stronger free cash flow margin. The cash conversion rate improved relative to the prior quarter and the year-ago period.
Compared to the prior quarter, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow margin improved. Compared to the same quarter last year, all metrics were higher except capital expenditure which was higher but free cash flow margin still improved.
Monitor the company's capital expenditure plans, as the filing notes the ability to adjust them temporarily to manage liquidity.