Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue in the current quarter was lower than the preceding quarter but higher than the same quarter last year. Free cash flow margin weakened compared to both the prior quarter and the year-ago quarter, driven by a lower operating cash flow relative to revenue.
- With revenue lower than the preceding quarter, operating cash flow also decreased, leading to free cash flow that was lower than both the prior quarter and the year-ago quarter. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all declined. Relative to the same quarter one year earlier, revenue improved, but operating cash flow, free cash flow, and free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$11.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.8B
Cash generated by operations before capital spending.
CapEx
$430.0M
Capital spending and related asset purchases.
FCF margin
45.0%
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 | $9.8B | $4.5B | $565.0M | $4.0B | 40.4% |
| 2024-09-30 | $9.7B | -$1.8B | $455.0M | -$2.3B | -23.3% |
| 2024-12-31 | $10.0B | $5.8B | $495.0M | $5.3B | 53.1% |
| 2025-03-31 | $9.6B | $4.8B | $430.0M | $4.3B | 45.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 167.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.5% | 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 Decline
The decline in operating cash flow was the strongest observable driver, as free cash flow moved in line with operating cash flow while capital expenditure was relatively stable. Operating cash flow was lower than both the prior quarter and the year-ago quarter despite revenue being higher than the year-ago quarter.
The lower operating cash flow reduced free cash flow and compressed the free cash flow margin compared to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue lower than the preceding quarter, operating cash flow also decreased, leading to free cash flow that was lower than both the prior quarter and the year-ago quarter. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all declined. Relative to the same quarter one year earlier, revenue improved, but operating cash flow, free cash flow, and free cash flow margin weakened.
Monitor the trajectory of operating cash flow relative to revenue, as it was lower in the current quarter compared to both the prior quarter and the year-ago quarter.