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 as operating cash flow declined, while revenue remained stable compared to the prior quarter and was higher than a year ago. Capital expenditure was lower in both comparisons, but the drop in cash from operations drove the reduction in free cash flow.
- Revenue was stable or higher, but operating cash flow fell, causing free cash flow and free cash flow margin to decline. Capital expenditure was lower, which partially offset the operating cash flow weakness, but not enough to prevent the margin contraction.
- Compared to the immediately preceding quarter, revenue was stable while operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and margin were lower, with capital expenditure also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$660.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$991.0M
Capital spending and related asset purchases.
FCF margin
3.6%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $17.5B | $2.0B | $1.3B | $690.0M | 3.9% |
| 2024-09-30 | $17.5B | $3.5B | $1.2B | $2.3B | 13.3% |
| 2024-12-31 | $18.3B | $2.6B | $1.3B | $1.3B | 7.0% |
| 2025-03-31 | $18.3B | $1.7B | $991.0M | $660.0M | 3.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 41.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$43.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Lower Operating Cash Flow
Operating cash flow was lower than both the prior quarter and the same quarter last year, while revenue was stable or higher, indicating a weaker conversion of revenue into cash.
This decline in operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable or higher, but operating cash flow fell, causing free cash flow and free cash flow margin to decline. Capital expenditure was lower, which partially offset the operating cash flow weakness, but not enough to prevent the margin contraction.
Compared to the immediately preceding quarter, revenue was stable while operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and margin were lower, with capital expenditure also lower.
The impact of working capital items on operating cash flow, as described in the filing, is a key factor to monitor.