Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both fell from the prior quarter but increased year-over-year. Capital expenditure rose year-over-year, turning free cash flow sharply negative compared to a positive result a year ago.
- Operating cash flow was lower than revenue, and capital expenditure exceeded operating cash flow, resulting in negative free cash flow and free cash flow margin. The gap between revenue and operating cash flow widened compared to both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all weakened sharply, with free cash flow turning from positive to negative. Versus the same quarter one year earlier, revenue and capital expenditure were higher, operating cash flow was lower, and free cash flow worsened materially from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$20.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$8.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$17.0B
Cash generated by operations before capital spending.
CapEx
$25.0B
Capital spending and related asset purchases.
FCF margin
-5.1%
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 | $148.0B | $25.3B | $17.6B | $7.7B | 5.2% |
| 2024-09-30 | $158.9B | $26.0B | $22.6B | $3.4B | 2.1% |
| 2024-12-31 | $187.8B | $45.6B | $27.8B | $17.8B | 9.5% |
| 2025-03-31 | $155.7B | $17.0B | $25.0B | -$8.0B | -5.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -46.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 16.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | $7.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital expenditure relative to operating cash flow
Capital expenditure increased compared to both the prior quarter and the year-ago quarter, while operating cash flow declined sequentially and was barely above the year-ago level. As a result, capital expenditure exceeded operating cash flow, leading to negative free cash flow.
This is the strongest observable driver of the negative free cash flow and free cash flow margin 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, and capital expenditure exceeded operating cash flow, resulting in negative free cash flow and free cash flow margin. The gap between revenue and operating cash flow widened compared to both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all weakened sharply, with free cash flow turning from positive to negative. Versus the same quarter one year earlier, revenue and capital expenditure were higher, operating cash flow was lower, and free cash flow worsened materially from positive to negative.
Monitor whether capital expenditure will continue to outpace operating cash flow, as this pattern is the direct driver of negative free cash flow.