Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened compared with both the prior quarter and the same quarter last year, while revenue was stable year-over-year. Operating cash flow declined more than proportionally relative to revenue, compressing the conversion rate.
- Revenue was stable versus a year ago, yet operating cash flow was lower, resulting in a lower free cash flow margin. Capital expenditure remained modest and decreased slightly from both comparison periods, so the decline in free cash flow was driven entirely by weaker operating cash generation.
- Compared with the immediately preceding quarter, all cash flow metrics and margin were lower. Versus the same quarter one year earlier, revenue was unchanged, but operating cash flow, free cash flow, and free cash flow margin all declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.8B
Cash generated by operations before capital spending.
CapEx
$104.0M
Capital spending and related asset purchases.
FCF margin
24.8%
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 | $7.0B | $1.3B | $130.0M | $1.2B | 17.2% |
| 2024-09-30 | $7.5B | $4.3B | $141.0M | $4.2B | 55.2% |
| 2024-12-31 | $7.6B | $3.0B | $147.0M | $2.8B | 37.4% |
| 2025-03-31 | $6.7B | $1.8B | $104.0M | $1.7B | 24.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 125.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Compression
Operating cash flow decreased from both the prior quarter and the year-ago period, despite revenue being stable year-over-year. This indicates a decline in the cash conversion rate from operations.
The lower operating cash flow directly reduced free cash flow and margin, making it the primary observable driver of the quarter's weaker cash performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus a year ago, yet operating cash flow was lower, resulting in a lower free cash flow margin. Capital expenditure remained modest and decreased slightly from both comparison periods, so the decline in free cash flow was driven entirely by weaker operating cash generation.
Compared with the immediately preceding quarter, all cash flow metrics and margin were lower. Versus the same quarter one year earlier, revenue was unchanged, but operating cash flow, free cash flow, and free cash flow margin all declined.
Monitor the trajectory of operating cash flow relative to revenue, as the conversion efficiency weakened notably in the current quarter.