Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the prior quarter but was lower than the same quarter a year earlier. The free cash flow margin also strengthened sequentially while declining year over year.
- Revenue grew, but operating cash flow remained a modest proportion of revenue; after capital expenditure, free cash flow margin was higher than the prior quarter yet lower than the year-ago quarter.
- Compared with the prior quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter a year earlier, revenue was higher, but operating cash flow and free cash flow were lower, and capital expenditure was also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$821.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$196.0M
Capital spending and related asset purchases.
FCF margin
1.7%
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 | $43.9B | $447.0M | $323.0M | $124.0M | 0.3% |
| 2024-09-30 | $45.1B | $2.7B | $332.0M | $2.3B | 5.2% |
| 2024-12-31 | $45.4B | $706.0M | $322.0M | $384.0M | 0.8% |
| 2025-03-31 | $48.9B | $1.0B | $196.0M | $821.0M | 1.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 37.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$22.3B | 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 Improvement
Operating cash flow increased compared with the prior quarter, and combined with lower capital expenditure, it drove a higher free cash flow. This sequential improvement was the most notable factor in the quarter's cash generation.
The rise in operating cash flow was the primary contributor to the sequential increase in free cash flow, partially offsetting the decline from the year-ago level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue grew, but operating cash flow remained a modest proportion of revenue; after capital expenditure, free cash flow margin was higher than the prior quarter yet lower than the year-ago quarter.
Compared with the prior quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter a year earlier, revenue was higher, but operating cash flow and free cash flow were lower, and capital expenditure was also lower.
Monitor the timing of cash outflows for claims and operating expenses, as the filing notes that such outflows fluctuate with the amount and timing of settlements.