Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved versus the prior quarter and the year-ago quarter. Free cash flow rose sharply from the prior quarter, while the free cash flow margin was stable compared to the same quarter last year.
- Operating cash flow exceeded capital expenditure, generating positive free cash flow. The free cash flow margin improved from the prior quarter but was slightly lower than the year-ago quarter.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter last year, revenue and operating cash flow were higher, while free cash flow was higher 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
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$934.0M
Capital spending and related asset purchases.
FCF margin
22.2%
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 | $3.9B | $1.5B | $948.0M | $587.0M | 15.1% |
| 2024-09-30 | $3.8B | $1.7B | $877.0M | $786.0M | 20.7% |
| 2024-12-31 | $4.5B | $1.7B | $926.0M | $738.0M | 16.4% |
| 2025-03-31 | $4.5B | $1.9B | $934.0M | $1.0B | 22.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 204.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 20.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.7B | 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 Growth
Operating cash flow increased from both the prior quarter and the year-ago quarter, providing the primary support for higher free cash flow.
The improvement in operating cash flow drove free cash flow higher despite a modest increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, generating positive free cash flow. The free cash flow margin improved from the prior quarter but was slightly lower than the year-ago quarter.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter last year, revenue and operating cash flow were higher, while free cash flow was higher and the free cash flow margin was slightly lower.
Monitor the trend in capital expenditure relative to operating cash flow, as it directly affects free cash flow generation.