Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin declined compared to both the prior quarter and the same quarter last year, driven by a lower operating cash flow. Capital expenditure also decreased, but the reduction was insufficient to offset the drop in operating cash flow.
- Revenue was lower than both the prior quarter and the year-ago quarter, while operating cash flow decreased more sharply. Capital expenditure declined, but free cash flow and margin still weakened due to the larger contraction in operating cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin all decreased. Versus the same quarter one year earlier, all metrics were also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$13.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.2B
Cash generated by operations before capital spending.
CapEx
$3.9B
Capital spending and related asset purchases.
FCF margin
2.7%
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 | $49.6B | $6.3B | $4.0B | $2.3B | 4.7% |
| 2024-09-30 | $48.9B | $9.7B | $4.1B | $5.6B | 11.5% |
| 2024-12-31 | $48.3B | $8.7B | $4.3B | $4.4B | 9.0% |
| 2025-03-31 | $46.1B | $5.2B | $3.9B | $1.3B | 2.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 36.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.5% | 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
Operating cash flow was lower than both the prior quarter and the year-ago quarter, reducing free cash flow despite a decrease in capital expenditure. The drop in operating cash flow was the most significant factor in the quarter's weaker cash conversion.
The decline in operating cash flow was the primary driver of the lower free cash flow and margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter, while operating cash flow decreased more sharply. Capital expenditure declined, but free cash flow and margin still weakened due to the larger contraction in operating cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and margin all decreased. Versus the same quarter one year earlier, all metrics were also lower.
Monitor the trend in operating cash flow, as it declined significantly from both prior periods and was the main factor behind the weaker free cash flow.