Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion was positive this quarter, driven by operating cash flow that fully covered capital expenditure. Free cash flow turned positive from negative in both the prior quarter and the same quarter last year.
- Operating cash flow was higher than capital expenditure, yielding a small positive free cash flow and a modest free cash flow margin. Revenue was higher than both comparison periods, while operating cash flow improved markedly.
- Compared to the preceding quarter, free cash flow improved from negative to positive as operating cash flow rose and capital expenditure declined. Versus the same quarter one year earlier, free cash flow also strengthened from negative to positive, with both higher revenue and operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$33.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$1.0B
Capital spending and related asset purchases.
FCF margin
0.8%
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 | $2.5B | $670.7M | $1.1B | -$400.8M | -15.8% |
| 2024-09-30 | $3.1B | $555.6M | $1.1B | -$515.4M | -16.8% |
| 2024-12-31 | $3.0B | $642.1M | $1.2B | -$546.5M | -18.4% |
| 2025-03-31 | $4.1B | $1.0B | $1.0B | $33.2M | 0.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 6.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 24.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$27.5B | 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 was materially higher than both the prior quarter and the year-ago quarter, enabling a shift from negative free cash flow to a positive result. Revenue also increased over both comparison periods, supporting the cash generation.
The higher operating cash flow was the strongest observable factor behind the positive free cash flow this 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 capital expenditure, yielding a small positive free cash flow and a modest free cash flow margin. Revenue was higher than both comparison periods, while operating cash flow improved markedly.
Compared to the preceding quarter, free cash flow improved from negative to positive as operating cash flow rose and capital expenditure declined. Versus the same quarter one year earlier, free cash flow also strengthened from negative to positive, with both higher revenue and operating cash flow.
Monitor whether operating cash flow can sustain its current level relative to capital expenditure in coming quarters.