Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin were lower compared to both the prior quarter and the same quarter last year. Operating cash flow decreased while capital expenditure increased relative to the year-ago period.
- Revenue was lower than both prior periods, and operating cash flow declined more sharply, resulting in a lower conversion rate. After higher capital expenditure, free cash flow and margin weakened further.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was slightly higher. Versus the same quarter last year, revenue and operating cash flow were lower, capital expenditure was higher, and free cash flow was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$579.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$710.0M
Capital spending and related asset purchases.
FCF margin
4.1%
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 | $16.7B | $3.0B | $341.0M | $2.7B | 16.1% |
| 2024-09-30 | $16.1B | $3.6B | $444.0M | $3.1B | 19.4% |
| 2024-12-31 | $16.2B | $3.4B | $703.0M | $2.7B | 16.6% |
| 2025-03-31 | $14.2B | $1.3B | $710.0M | $579.0M | 4.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 28.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.0% | 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 Decline
Operating cash flow was lower than both the prior quarter and the same quarter last year, which was the primary factor behind the lower free cash flow and margin.
The 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 prior periods, and operating cash flow declined more sharply, resulting in a lower conversion rate. After higher capital expenditure, free cash flow and margin weakened further.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was slightly higher. Versus the same quarter last year, revenue and operating cash flow were lower, capital expenditure was higher, and free cash flow was lower.
Monitor the trend in operating cash flow, as the filing notes a decline from the same period a year ago and a reduction in the cash balance from year-end.