Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The current quarter generated positive free cash flow and margin, a sharp improvement from the negative figures in both the immediately preceding quarter and the same quarter one year earlier. Revenue and operating cash flow both turned positive, driving the change.
- Revenue increased from the prior quarter, while operating cash flow shifted from negative to positive, and capital expenditure was lower. This resulted in positive free cash flow and a positive free cash flow margin.
- Compared to the immediately preceding quarter, all metrics improved: revenue was higher, operating cash flow turned from negative to positive, capital expenditure was lower, and free cash flow and margin moved from negative to positive. Versus the same quarter one year earlier, the same pattern of improvement is observed.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$135.0M
Capital spending and related asset purchases.
FCF margin
3.2%
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 | $36.0B | $2.2B | $186.0M | $2.0B | 5.5% |
| 2024-09-30 | $36.9B | -$978.0M | $153.0M | -$1.1B | -3.1% |
| 2024-12-31 | $36.3B | -$587.0M | $154.0M | -$741.0M | -2.0% |
| 2025-03-31 | $42.5B | $1.5B | $135.0M | $1.4B | 3.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 104.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.5B | 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 turnaround
Operating cash flow shifted from negative in both the prior quarter and the year-ago quarter to positive in the current quarter. The filing attributes this primarily to net earnings and an increase in medical claims liabilities, partially offset by a delay in premium payments from a state partner.
This improvement was the primary driver of the transition from negative to positive free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, while operating cash flow shifted from negative to positive, and capital expenditure was lower. This resulted in positive free cash flow and a positive free cash flow margin.
Compared to the immediately preceding quarter, all metrics improved: revenue was higher, operating cash flow turned from negative to positive, capital expenditure was lower, and free cash flow and margin moved from negative to positive. Versus the same quarter one year earlier, the same pattern of improvement is observed.
Monitor the timing of premium payments from state partners, as a delay in one such payment partially offset operating cash flow in the current quarter, though it was subsequently received.