Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow improved sequentially from the prior quarter but weakened compared to the year-ago quarter.
- Operating cash flow was significantly higher than the prior quarter and slightly lower than the year-ago quarter. With capital expenditure remaining at a similar level, free cash flow margin improved from the previous quarter but was lower than the same quarter last year.
- Compared to the immediately preceding quarter, revenue was lower but operating cash flow was higher, leading to a stronger free cash flow margin. Compared to the same quarter one year earlier, revenue was higher but operating cash flow was slightly lower, resulting in a weakened free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.6B
Cash generated by operations before capital spending.
CapEx
$743.0M
Capital spending and related asset purchases.
FCF margin
4.0%
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 | $91.2B | $3.1B | $638.0M | $2.5B | 2.7% |
| 2024-09-30 | $95.4B | -$745.0M | $670.0M | -$1.4B | -1.5% |
| 2024-12-31 | $97.7B | $1.9B | $768.0M | $1.1B | 1.1% |
| 2025-03-31 | $94.6B | $4.6B | $743.0M | $3.8B | 4.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 214.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | 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.
Sequential improvement in operating cash flow
Operating cash flow for the current quarter was substantially higher than the prior quarter, which drove the improvement in free cash flow despite a slight decline in revenue.
Free cash flow margin increased from the prior quarter, indicating better cash conversion efficiency period over period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was significantly higher than the prior quarter and slightly lower than the year-ago quarter. With capital expenditure remaining at a similar level, free cash flow margin improved from the previous quarter but was lower than the same quarter last year.
Compared to the immediately preceding quarter, revenue was lower but operating cash flow was higher, leading to a stronger free cash flow margin. Compared to the same quarter one year earlier, revenue was higher but operating cash flow was slightly lower, resulting in a weakened free cash flow margin.
Monitor the trend in free cash flow margin relative to both the sequential and year-ago periods.