Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow improved compared to a year ago, though it weakened from the preceding quarter.
- Operating cash flow was lower than revenue, resulting in a free cash flow margin that was positive but narrower than the prior quarter. Capital expenditure consumed a portion of operating cash flow, leaving free cash flow below operating cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all were lower. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$980.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$411.0M
Capital spending and related asset purchases.
FCF margin
12.0%
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 | $8.4B | $2.5B | $238.0M | $2.2B | 26.5% |
| 2024-09-30 | $8.5B | $3.6B | $257.0M | $3.3B | 39.0% |
| 2024-12-31 | $9.1B | $4.8B | $371.0M | $4.4B | 48.4% |
| 2025-03-31 | $8.1B | $1.4B | $411.0M | $980.0M | 12.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 56.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$48.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year cash flow improvement
Operating cash flow and free cash flow were both higher than the same quarter one year earlier, leading to a stronger free cash flow margin. This was the most notable observable change among the supplied metrics.
The year-over-year increase in free cash flow was the strongest directional driver in this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than revenue, resulting in a free cash flow margin that was positive but narrower than the prior quarter. Capital expenditure consumed a portion of operating cash flow, leaving free cash flow below operating cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all were lower. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all were higher.
Monitor the relationship between operating cash flow and capital expenditure, as capital expenditure increased from both the prior quarter and the year-ago quarter.