Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive compared to the same quarter last year, but declined from the immediately preceding quarter. The cash conversion rate weakened as operating cash flow decreased despite higher revenue.
- Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was higher than a year ago but lower than the prior quarter. Capital expenditure was lower than the prior quarter and slightly higher than a year ago. The resulting free cash flow margin improved from negative a year ago but weakened from the prior quarter.
- Compared to the preceding quarter, free cash flow decreased while revenue increased, indicating a weaker cash conversion. Compared to the same quarter last year, free cash flow improved from negative to positive, driven by a substantial increase in operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.7B
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
2.5%
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 |
|---|---|---|---|---|---|
| 2024-02-18 | $58.4B | $731.0M | $1.0B | -$300.0M | -0.5% |
| 2024-05-12 | $58.5B | $3.0B | $1.1B | $1.9B | 3.3% |
| 2024-11-24 | $62.2B | $3.3B | $1.3B | $2.0B | 3.2% |
| 2025-02-16 | $63.7B | $2.7B | $1.1B | $1.6B | 2.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 90.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $6.5B | 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 recovery
Operating cash flow increased substantially from the year-ago quarter, reversing a negative free cash flow position. This improvement was the primary factor behind the positive free cash flow margin.
Helped convert revenue growth into positive free cash flow for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was higher than a year ago but lower than the prior quarter. Capital expenditure was lower than the prior quarter and slightly higher than a year ago. The resulting free cash flow margin improved from negative a year ago but weakened from the prior quarter.
Compared to the preceding quarter, free cash flow decreased while revenue increased, indicating a weaker cash conversion. Compared to the same quarter last year, free cash flow improved from negative to positive, driven by a substantial increase in operating cash flow.
Monitor the level of unsettled credit and debit card receivables, which affects the timing of cash flows from operations.