Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined sharply from the prior quarter and also fell relative to the same quarter a year ago. Operating cash flow was the primary factor behind the lower free cash flow, as capital expenditure remained relatively stable.
- Revenue was higher than a year ago, but operating cash flow was lower, resulting in a weakened conversion from revenue to free cash flow. The free cash flow margin contracted versus both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin declined significantly. Versus the same quarter a year earlier, revenue was higher but operating cash flow and free cash flow were lower, with a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$15.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$235.0M
Capital spending and related asset purchases.
FCF margin
10.5%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $14.5B | $2.3B | $241.0M | $2.0B | 14.0% |
| 2024-09-30 | $14.5B | $5.4B | $249.0M | $5.2B | 35.9% |
| 2024-12-31 | $15.1B | $7.0B | $291.0M | $6.8B | 44.7% |
| 2025-03-31 | $13.3B | $1.6B | $235.0M | $1.4B | 10.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 108.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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 Weakness
Operating cash flow was substantially lower than both the prior quarter and the year-ago quarter, driving the decline in free cash flow. Capital expenditure was higher than a year ago but lower than the prior quarter, indicating that the cash conversion weakness stems from operating activities rather than investing outlays.
The lower operating cash flow compressed the free cash flow margin significantly compared to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than a year ago, but operating cash flow was lower, resulting in a weakened conversion from revenue to free cash flow. The free cash flow margin contracted versus both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin declined significantly. Versus the same quarter a year earlier, revenue was higher but operating cash flow and free cash flow were lower, with a weakened margin.
Monitor the trajectory of operating cash flow, which declined notably from both the prior quarter and the year-ago period.