Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow margin weakened versus the prior quarter but improved relative to the year-ago period, supported by higher operating cash flow and no capital expenditure in the current quarter.
- Operating cash flow rose from the prior quarter and the year-ago quarter, while capital expenditure was absent in the current quarter, resulting in free cash flow matching operating cash flow. The free cash flow margin declined from the prior quarter due to a larger increase in revenue relative to operating cash flow.
- Compared to the prior quarter, revenue was higher but operating cash flow was lower, leading to a weakened free cash flow margin. Versus the same quarter last year, revenue and operating cash flow were both higher, and free cash flow margin improved as capital expenditure was not reported in the current period.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$0
Capital spending and related asset purchases.
FCF margin
25.8%
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 | $4.7B | $1.5B | n/a | n/a | n/a |
| 2024-09-30 | $5.5B | $2.2B | $0 | $2.2B | 39.7% |
| 2024-12-31 | $4.8B | $1.7B | $399.0M | $1.3B | 27.9% |
| 2025-03-31 | $5.6B | $1.4B | $0 | $1.4B | 25.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 180.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$42.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Higher Operating Cash Flow
Operating cash flow increased from both the prior quarter and the year-ago quarter, providing the primary support for free cash flow in the current period.
The rise in operating cash flow, combined with zero capital expenditure, enabled free cash flow to match operating cash flow and improve the margin versus the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose from the prior quarter and the year-ago quarter, while capital expenditure was absent in the current quarter, resulting in free cash flow matching operating cash flow. The free cash flow margin declined from the prior quarter due to a larger increase in revenue relative to operating cash flow.
Compared to the prior quarter, revenue was higher but operating cash flow was lower, leading to a weakened free cash flow margin. Versus the same quarter last year, revenue and operating cash flow were both higher, and free cash flow margin improved as capital expenditure was not reported in the current period.
Monitor whether capital expenditure remains absent in future quarters, as its reappearance would directly reduce free cash flow.