Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined compared to both the prior quarter and the same quarter last year, but operating cash flow increased, leading to a positive free cash flow margin. The improvement in operating cash flow was the primary driver, while capital expenditure decreased modestly.
- Operating cash flow exceeded capital expenditure by a wide margin, resulting in a positive free cash flow. The free cash flow margin turned positive after being negative in the prior quarter, and was slightly above the year-ago level.
- Compared to the preceding quarter, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow improved from negative to positive. Versus the same quarter a year earlier, revenue was slightly lower, operating cash flow was a bit higher, capital expenditure was roughly comparable, and free cash flow was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$6.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$10.9B
Cash generated by operations before capital spending.
CapEx
$4.3B
Capital spending and related asset purchases.
FCF margin
11.2%
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 | $63.5B | $13.6B | $4.5B | $9.1B | 14.3% |
| 2024-09-30 | $62.0B | $1.8B | $4.7B | -$2.9B | -4.7% |
| 2024-12-31 | $62.9B | $4.6B | $5.3B | -$726.0M | -1.2% |
| 2025-03-31 | $59.4B | $10.9B | $4.3B | $6.6B | 11.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 143.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.2% | 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 Strength
Operating cash flow increased relative to the prior quarter, more than offsetting a decline in revenue and lower capital spending, leading to a significant improvement in free cash flow.
This strength was the key factor in turning free cash flow positive and raising the margin above the prior year's level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure by a wide margin, resulting in a positive free cash flow. The free cash flow margin turned positive after being negative in the prior quarter, and was slightly above the year-ago level.
Compared to the preceding quarter, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow improved from negative to positive. Versus the same quarter a year earlier, revenue was slightly lower, operating cash flow was a bit higher, capital expenditure was roughly comparable, and free cash flow was higher.
Monitor the trend in capital expenditure, as it declined from the prior quarter and may influence future free cash flow generation.