Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion turned strongly positive in the current quarter, driven by a large swing in operating cash flow. Free cash flow margin improved to a positive level, contrasting with negative margins in both the preceding quarter and the year-ago period.
- Revenue remained roughly stable compared with the prior quarter and the year-ago period. Operating cash flow moved from a net outflow to a substantial inflow, resulting in positive free cash flow and a healthy free cash flow margin.
- Compared with the preceding quarter, operating cash flow and free cash flow both improved from negative to positive, while free cash flow margin turned positive. Versus the same quarter one year earlier, the trend is similar—operating cash flow and free cash flow shifted from negative to positive, and free cash flow margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.9B
Cash generated by operations before capital spending.
CapEx
$126.0M
Capital spending and related asset purchases.
FCF margin
5.1%
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 | $59.9B | $2.1B | $193.0M | $1.9B | 3.2% |
| 2024-09-30 | $52.3B | -$1.6B | $90.0M | -$1.7B | -3.3% |
| 2024-12-31 | $55.3B | -$396.0M | $99.0M | -$495.0M | -0.9% |
| 2025-03-31 | $54.9B | $2.9B | $126.0M | $2.8B | 5.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 550.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | 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 Reversal
The most significant driver this quarter was the sharp improvement in operating cash flow, which moved from a net outflow in both prior periods to a large inflow. According to the filing, this improvement included the impact of unwinding negative net working capital related to certain contracts and the onboarding of new customers.
The positive free cash flow enabled the company to fund acquisitions and other capital needs while maintaining a cash balance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained roughly stable compared with the prior quarter and the year-ago period. Operating cash flow moved from a net outflow to a substantial inflow, resulting in positive free cash flow and a healthy free cash flow margin.
Compared with the preceding quarter, operating cash flow and free cash flow both improved from negative to positive, while free cash flow margin turned positive. Versus the same quarter one year earlier, the trend is similar—operating cash flow and free cash flow shifted from negative to positive, and free cash flow margin strengthened.
Monitor whether the positive operating cash flow can be sustained given the company's commentary about the unwinding of negative net working capital associated with certain contracts.