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, while operating cash flow, though still negative, narrowed significantly. Free cash flow remained negative but improved substantially, with the margin moving from deeply negative to a less negative level.
- Revenue rose while operating cash flow was less negative, and capital expenditure was higher than in both comparison periods. The resulting free cash flow was still negative but its margin improved, indicating a weaker cash drain relative to revenue.
- Compared with the immediately preceding quarter and the same quarter one year earlier, revenue was higher, operating cash flow was less negative, free cash flow was less negative, and the free cash flow margin improved. Capital expenditure was higher in both comparisons.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$12.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$2.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.6B
Cash generated by operations before capital spending.
CapEx
$674.0M
Capital spending and related asset purchases.
FCF margin
-11.7%
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 | $16.9B | -$3.9B | $404.0M | -$4.3B | -25.7% |
| 2024-09-30 | $17.8B | -$1.3B | $611.0M | -$2.0B | -11.0% |
| 2024-12-31 | $15.2B | -$3.5B | $648.0M | -$4.1B | -26.9% |
| 2025-03-31 | $19.5B | -$1.6B | $674.0M | -$2.3B | -11.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 6189.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$43.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue growth and narrower cash burn
The most notable factor was the improvement in free cash flow margin, which moved from deeply negative to a less negative level. This was accompanied by higher revenue and a less negative operating cash flow, while capital expenditure increased.
The reduced cash deficit lowers the company's reliance on external financing in the short term, though the cash flow remains negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow was less negative, and capital expenditure was higher than in both comparison periods. The resulting free cash flow was still negative but its margin improved, indicating a weaker cash drain relative to revenue.
Compared with the immediately preceding quarter and the same quarter one year earlier, revenue was higher, operating cash flow was less negative, free cash flow was less negative, and the free cash flow margin improved. Capital expenditure was higher in both comparisons.
Monitor whether operating cash flow can turn positive, as it remains negative despite the improvement.