Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative as operating cash flow weakened significantly while capital expenditure remained elevated. Revenue was slightly lower than the prior quarter but higher than the same quarter last year.
- Operating cash flow declined sharply relative to revenue, resulting in a negative free cash flow margin. Capital expenditure exceeded operating cash flow, causing free cash flow to be negative.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both weakened, while capital expenditure increased. Versus the same quarter a year ago, operating cash flow and free cash flow also weakened, despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$150.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$585.0M
Cash generated by operations before capital spending.
CapEx
$735.0M
Capital spending and related asset purchases.
FCF margin
-0.6%
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 |
|---|---|---|---|---|---|
| 2024-05-03 | $22.2B | $1.0B | $596.0M | $447.0M | 2.0% |
| 2024-08-02 | $25.0B | $1.3B | $682.0M | $658.0M | 2.6% |
| 2024-11-01 | $24.4B | $1.6B | $639.0M | $914.0M | 3.8% |
| 2025-01-31 | $23.9B | $585.0M | $735.0M | -$150.0M | -0.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -9.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$20.9B | 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 Decline
Operating cash flow decreased substantially from both the prior quarter and the year-ago quarter, while capital expenditure remained relatively stable. This decline was the primary factor behind the negative free cash flow.
The decline in operating cash flow directly drove the negative free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow declined sharply relative to revenue, resulting in a negative free cash flow margin. Capital expenditure exceeded operating cash flow, causing free cash flow to be negative.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both weakened, while capital expenditure increased. Versus the same quarter a year ago, operating cash flow and free cash flow also weakened, despite higher revenue.
Monitor the trajectory of operating cash flow, as it is the primary source of liquidity per the company's filings.