Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased sequentially but increased compared to the same quarter last year. Free cash flow was negative in the current quarter, a seasonal pattern consistent with the prior year.
- Operating cash flow was negative, leading to negative free cash flow after capital expenditure. The free cash flow margin was negative, reflecting the first-quarter cash use pattern.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all weakened sharply, swinging from positive to negative free cash flow. Versus the same quarter last year, revenue improved modestly while free cash flow was slightly more negative, with a slightly weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$659.0M
Cash generated by operations before capital spending.
CapEx
$645.0M
Capital spending and related asset purchases.
FCF margin
-19.3%
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 | $9.7B | $1.5B | $624.0M | $861.0M | 8.9% |
| 2024-09-30 | $10.5B | $1.5B | $505.0M | $981.0M | 9.3% |
| 2024-12-31 | $8.9B | $2.7B | $943.0M | $1.8B | 20.1% |
| 2025-03-31 | $6.8B | -$659.0M | $645.0M | -$1.3B | -19.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1387.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Improvement
Revenue in the current quarter was higher than the same quarter last year, indicating a year-over-year increase in top-line performance.
Higher revenue compared to last year partially offset the seasonal cash outflow, though free cash flow remained negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, leading to negative free cash flow after capital expenditure. The free cash flow margin was negative, reflecting the first-quarter cash use pattern.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all weakened sharply, swinging from positive to negative free cash flow. Versus the same quarter last year, revenue improved modestly while free cash flow was slightly more negative, with a slightly weakened margin.
Monitor the level of capital expenditure, which was higher than both the prior quarter and the year-ago quarter, as it directly influences free cash flow.