Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the preceding quarter but higher than the prior year period. Operating cash flow increased from the preceding quarter and matched the prior year level, while capital expenditure was slightly lower than the preceding quarter, resulting in higher free cash flow and an improved free cash flow margin compared to the preceding quarter; the margin was slightly below the same quarter a year earlier.
- Operating cash flow was higher than the preceding quarter and unchanged from the prior year, while capital expenditure was slightly lower than the preceding quarter, leading to free cash flow that was higher than the preceding quarter and similar to the prior year. The free cash flow margin improved from the preceding quarter but was slightly lower than the same quarter a year earlier.
- Compared to the preceding quarter, revenue was lower, but operating cash flow and free cash flow were higher, and the free cash flow margin improved. Compared to the same quarter a year earlier, revenue was higher, operating cash flow was unchanged, free cash flow was similar, and the free cash flow margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
8.2%
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 | $16.7B | $2.4B | $1.3B | $1.1B | 6.8% |
| 2024-09-30 | $15.7B | $1.3B | $1.3B | -$54.0M | -0.3% |
| 2024-12-31 | $15.6B | $1.9B | $1.3B | $584.0M | 3.8% |
| 2025-03-31 | $14.0B | $2.4B | $1.2B | $1.2B | 8.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 480.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Free Cash Flow from Prior Quarter
Free cash flow increased compared to the preceding quarter, driven by higher operating cash flow and lower capital expenditure.
This contributed to a stronger free cash flow margin in the latest quarter relative to the preceding quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the preceding quarter and unchanged from the prior year, while capital expenditure was slightly lower than the preceding quarter, leading to free cash flow that was higher than the preceding quarter and similar to the prior year. The free cash flow margin improved from the preceding quarter but was slightly lower than the same quarter a year earlier.
Compared to the preceding quarter, revenue was lower, but operating cash flow and free cash flow were higher, and the free cash flow margin improved. Compared to the same quarter a year earlier, revenue was higher, operating cash flow was unchanged, free cash flow was similar, and the free cash flow margin was slightly lower.
Monitor the trend of capital expenditure relative to operating cash flow, as it decreased from the preceding quarter while operating cash flow rose.