Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the first quarter of fiscal 2025, free cash flow turned positive after a negative prior quarter, though it was slightly lower than the same quarter last year. The free cash flow margin improved from the previous quarter but remained modest.
- Revenue increased compared to both the prior quarter and the year-ago quarter. Operating cash flow turned positive from a negative prior quarter but was lower than the year-ago quarter. Capital expenditure decreased relative to both comparison periods, contributing to a positive free cash flow.
- Compared to the immediately preceding quarter, free cash flow improved significantly from a negative to a positive figure, driven by a substantial increase in operating cash flow. Relative to the same quarter one year earlier, free cash flow was slightly lower, as a higher revenue was offset by a lower operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$236.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$331.0M
Cash generated by operations before capital spending.
CapEx
$95.0M
Capital spending and related asset purchases.
FCF margin
0.7%
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 | $29.5B | $1.2B | $114.0M | $1.1B | 3.7% |
| 2024-09-30 | $29.4B | $1.9B | $130.0M | $1.7B | 5.9% |
| 2024-12-31 | $29.2B | -$528.0M | $154.0M | -$682.0M | -2.3% |
| 2025-03-31 | $32.1B | $331.0M | $95.0M | $236.0M | 0.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 19.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.1B | 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 Recovery
Operating cash flow rebounded to a positive figure from a negative prior quarter, which was the primary factor behind the improvement in free cash flow.
This recovery enabled the company to generate positive free cash flow in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to both the prior quarter and the year-ago quarter. Operating cash flow turned positive from a negative prior quarter but was lower than the year-ago quarter. Capital expenditure decreased relative to both comparison periods, contributing to a positive free cash flow.
Compared to the immediately preceding quarter, free cash flow improved significantly from a negative to a positive figure, driven by a substantial increase in operating cash flow. Relative to the same quarter one year earlier, free cash flow was slightly lower, as a higher revenue was offset by a lower operating cash flow.
Monitor the trend in operating cash flow, as it turned positive from the prior quarter but decreased from the year-ago level.