Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was higher than both the prior quarter and the same quarter last year, driven by improved operating cash flow. The free cash flow margin strengthened sequentially but weakened relative to the year-ago period.
- Revenue was unchanged from the prior quarter and higher than a year ago. Operating cash flow increased relative to both comparison periods, while capital expenditure was higher than both the prior and year-ago quarters. The resulting free cash flow and free cash flow margin improved sequentially but the margin was slightly lower than the year-ago level.
- Compared with the immediately preceding quarter, free cash flow and free cash flow margin both improved. Compared with the same quarter one year earlier, free cash flow was higher but the margin was slightly lower, reflecting a proportionally larger increase in revenue relative to free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$92.0M
Capital spending and related asset purchases.
FCF margin
11.4%
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 | $15.7B | $2.4B | $56.0M | $2.3B | 14.7% |
| 2024-09-30 | $16.6B | $3.2B | $63.0M | $3.1B | 18.9% |
| 2024-12-31 | $16.5B | $1.7B | $50.0M | $1.7B | 10.0% |
| 2025-03-31 | $16.5B | $2.0B | $92.0M | $1.9B | 11.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 314.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | 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 strength
Operating cash flow was the strongest observable driver, rising compared with both the prior quarter and the year-ago quarter. This directly supported the increase in free cash flow.
The higher operating cash flow more than offset the increase in capital expenditure, resulting in improved free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter and higher than a year ago. Operating cash flow increased relative to both comparison periods, while capital expenditure was higher than both the prior and year-ago quarters. The resulting free cash flow and free cash flow margin improved sequentially but the margin was slightly lower than the year-ago level.
Compared with the immediately preceding quarter, free cash flow and free cash flow margin both improved. Compared with the same quarter one year earlier, free cash flow was higher but the margin was slightly lower, reflecting a proportionally larger increase in revenue relative to free cash flow.
Monitor the trend in capital expenditure, which was higher in the current quarter compared with both the prior and year-ago periods.