Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened sharply from the prior quarter and also declined from the same quarter last year. The drop was driven by lower operating cash flow, which more than offset a reduction in capital expenditure.
- Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow fell, and while capital expenditure also decreased, free cash flow and free cash flow margin both declined, indicating a weaker conversion of revenue into free cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, all metrics were also lower, with the margin showing a notable decline.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$13.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$260.0M
Capital spending and related asset purchases.
FCF margin
15.1%
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 | $12.2B | $2.3B | $262.0M | $2.1B | 16.9% |
| 2024-09-30 | $11.9B | $5.6B | $324.0M | $5.3B | 44.3% |
| 2024-12-31 | $12.3B | $4.4B | $378.0M | $4.1B | 32.9% |
| 2025-03-31 | $11.2B | $2.0B | $260.0M | $1.7B | 15.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 69.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$38.6B | 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 most observable driver of the weaker cash conversion was the reduction in operating cash flow, which fell from both the prior quarter and the year-ago quarter. This decline was the primary factor behind the lower free cash flow and margin.
Lower operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow fell, and while capital expenditure also decreased, free cash flow and free cash flow margin both declined, indicating a weaker conversion of revenue into free cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, all metrics were also lower, with the margin showing a notable decline.
Monitor whether operating cash flow stabilizes or continues to decline in the coming quarter.