Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter last year, driven by higher operating cash flow and lower capital expenditure. However, free cash flow margin weakened significantly from the immediately preceding quarter due to a sharp decline in operating cash flow.
- Revenue was higher than the prior quarter but lower than the year-ago quarter. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter, while capital expenditure was higher than the prior quarter but lower than the year-ago quarter. The resulting free cash flow was lower than the prior quarter but higher than the year-ago quarter, with free cash flow margin weakening sequentially but improving year-over-year.
- Compared to the immediately preceding quarter, free cash flow was lower and free cash flow margin weakened, driven by a lower operating cash flow and higher capital expenditure. Compared to the same quarter one year earlier, free cash flow was higher and free cash flow margin improved, driven by higher operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$407.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$597.0M
Cash generated by operations before capital spending.
CapEx
$190.0M
Capital spending and related asset purchases.
FCF margin
4.6%
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 | $10.5B | $1.4B | $259.0M | $1.1B | 10.6% |
| 2024-09-30 | $9.7B | $2.0B | $279.0M | $1.7B | 17.7% |
| 2024-12-31 | $9.2B | $2.3B | $100.0M | $2.2B | 23.8% |
| 2025-03-31 | $8.9B | $597.0M | $190.0M | $407.0M | 4.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 28.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$17.4B | 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 Free Cash Flow Improvement
Free cash flow was higher than the same quarter last year, supported by higher operating cash flow and lower capital expenditure. This resulted in an improved free cash flow margin year-over-year.
The year-over-year improvement in free cash flow and margin reflects stronger cash generation from operations relative to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter but lower than the year-ago quarter. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter, while capital expenditure was higher than the prior quarter but lower than the year-ago quarter. The resulting free cash flow was lower than the prior quarter but higher than the year-ago quarter, with free cash flow margin weakening sequentially but improving year-over-year.
Compared to the immediately preceding quarter, free cash flow was lower and free cash flow margin weakened, driven by a lower operating cash flow and higher capital expenditure. Compared to the same quarter one year earlier, free cash flow was higher and free cash flow margin improved, driven by higher operating cash flow and lower capital expenditure.
Monitor the sustainability of operating cash flow, which declined sharply from the prior quarter despite higher revenue.