Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined versus the prior quarter due to lower operating cash flow and higher capital expenditure, while revenue also decreased. Compared to the same quarter last year, free cash flow improved, supported by higher revenue and operating cash flow.
- Revenue decreased sequentially, but the free cash flow margin weakened as the reduction in operating cash flow was proportionally larger and capital expenditure increased. On a year-over-year basis, revenue growth and a larger increase in operating cash flow relative to capital expenditure led to an improved free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower, while capital expenditure was higher. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, with capital expenditure also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$74.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$19.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$36.1B
Cash generated by operations before capital spending.
CapEx
$17.2B
Capital spending and related asset purchases.
FCF margin
21.0%
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 | $84.7B | $26.6B | $13.2B | $13.5B | 15.9% |
| 2024-09-30 | $88.3B | $30.7B | $13.1B | $17.6B | 20.0% |
| 2024-12-31 | $96.5B | $39.1B | $14.3B | $24.8B | 25.7% |
| 2025-03-31 | $90.2B | $36.1B | $17.2B | $19.0B | 21.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 54.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 19.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | $11.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year operating cash flow growth
Operating cash flow increased year-over-year at a faster pace than revenue, providing a solid base for free cash flow despite higher capital expenditure. This was the strongest observable driver of the free cash flow improvement relative to the same quarter last year.
Free cash flow and free cash flow margin improved year-over-year, supported by this operating cash flow expansion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased sequentially, but the free cash flow margin weakened as the reduction in operating cash flow was proportionally larger and capital expenditure increased. On a year-over-year basis, revenue growth and a larger increase in operating cash flow relative to capital expenditure led to an improved free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower, while capital expenditure was higher. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, with capital expenditure also higher.
Monitor the trajectory of capital expenditure relative to operating cash flow, as its sequential increase outpaced the decline in revenue and operating cash flow.