Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow and its margin weakened compared to both the prior quarter and the same quarter one year earlier, as revenue decreased and capital expenditure rose from the prior quarter. Operating cash flow improved sequentially but remained below the year-ago level.
- Revenue was lower than both comparison periods. Operating cash flow increased from the preceding quarter but declined year over year. Capital expenditure rose from the prior quarter yet remained below the year-ago level. Consequently, free cash flow and its margin decreased relative to both prior periods.
- Compared to the immediately preceding quarter, revenue was lower and capital expenditure was higher, leading to lower free cash flow and margin despite stronger operating cash flow. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower, while capital expenditure was also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$391.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$611.6M
Cash generated by operations before capital spending.
CapEx
$220.2M
Capital spending and related asset purchases.
FCF margin
8.6%
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 |
|---|---|---|---|---|---|
| 2024-08-25 | $4.8B | $624.2M | $140.3M | $483.9M | 10.0% |
| 2024-11-24 | $5.2B | $1.2B | $160.9M | $989.6M | 18.9% |
| 2025-02-23 | $4.8B | $531.9M | $103.9M | $428.0M | 8.8% |
| 2025-05-25 | $4.6B | $611.6M | $220.2M | $391.4M | 8.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 133.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Free cash flow decline
Free cash flow and its margin were lower in the current quarter compared to both the preceding quarter and the same quarter one year earlier. The sequential decrease occurred as capital expenditure rose despite higher operating cash flow, while the year-over-year decline reflected lower operating cash flow and lower revenue.
The trend in capital expenditure relative to operating cash flow merits close observation to assess the trajectory of free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both comparison periods. Operating cash flow increased from the preceding quarter but declined year over year. Capital expenditure rose from the prior quarter yet remained below the year-ago level. Consequently, free cash flow and its margin decreased relative to both prior periods.
Compared to the immediately preceding quarter, revenue was lower and capital expenditure was higher, leading to lower free cash flow and margin despite stronger operating cash flow. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower, while capital expenditure was also lower.
Monitor capital expenditure levels relative to operating cash flow generation, as rising capex in the current quarter reduced free cash flow despite improved operating cash flow.