Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Citigroup's free cash flow remained deeply negative in the second quarter of fiscal 2025, though the deficit narrowed from the prior quarter. Operating cash flow improved but remained a large outflow, while capital expenditure increased slightly.
- Revenue was stable compared to the prior quarter, but operating cash flow was a large negative outflow, resulting in a negative free cash flow margin. The cash conversion from revenue to free cash flow was weak, as operating cash flow did not cover capital expenditure.
- Compared to the prior quarter, the free cash flow deficit improved, driven by a smaller operating cash outflow. However, compared to the same quarter one year earlier, the free cash flow deficit was larger, as operating cash flow was more negative despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$93.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$38.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$36.6B
Cash generated by operations before capital spending.
CapEx
$1.8B
Capital spending and related asset purchases.
FCF margin
-176.9%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $20.2B | -$16.7B | $1.6B | -$18.2B | -90.2% |
| 2024-12-31 | $19.5B | $24.8B | $1.7B | $23.1B | 118.7% |
| 2025-03-31 | $21.6B | -$58.7B | $1.5B | -$60.2B | -278.9% |
| 2025-06-30 | $21.7B | -$36.6B | $1.8B | -$38.3B | -176.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -953.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.1% | 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 Improvement
Operating cash flow improved from the prior quarter, reducing the free cash flow deficit. This was the strongest observable driver of the quarter's performance.
The improvement in operating cash flow narrowed the free cash flow deficit compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter, but operating cash flow was a large negative outflow, resulting in a negative free cash flow margin. The cash conversion from revenue to free cash flow was weak, as operating cash flow did not cover capital expenditure.
Compared to the prior quarter, the free cash flow deficit improved, driven by a smaller operating cash outflow. However, compared to the same quarter one year earlier, the free cash flow deficit was larger, as operating cash flow was more negative despite higher revenue.
Monitor the trajectory of operating cash flow, as it remains the primary driver of free cash flow volatility.