Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the same quarter last year but lower than the prior quarter. Operating cash flow improved from both periods, driving higher free cash flow and a stronger margin.
- The cash conversion cycle shows that operating cash flow covered capital expenditures comfortably, resulting in a free cash flow margin that improved sequentially and year over year.
- Compared to the prior quarter, revenue decreased while operating cash flow increased slightly, leading to a higher free cash flow margin. Versus the same quarter last year, revenue was unchanged, but operating cash flow grew, boosting free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$12.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.4B
Cash generated by operations before capital spending.
CapEx
$244.0M
Capital spending and related asset purchases.
FCF margin
28.4%
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 | $15.8B | $2.1B | $220.0M | $1.8B | 11.7% |
| 2024-09-30 | $15.0B | $2.9B | $286.0M | $2.6B | 17.3% |
| 2024-12-31 | $17.6B | $4.3B | $303.0M | $4.0B | 22.9% |
| 2025-03-31 | $14.5B | $4.4B | $244.0M | $4.1B | 28.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 391.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Strength
Operating cash flow increased relative to both the prior quarter and the year-ago quarter, even as revenue remained flat year over year. This drove an improvement in free cash flow and margin.
The stronger operating cash flow provided the primary support for the quarter's free cash flow growth.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The cash conversion cycle shows that operating cash flow covered capital expenditures comfortably, resulting in a free cash flow margin that improved sequentially and year over year.
Compared to the prior quarter, revenue decreased while operating cash flow increased slightly, leading to a higher free cash flow margin. Versus the same quarter last year, revenue was unchanged, but operating cash flow grew, boosting free cash flow and margin.
Monitor capital expenditure trends as they may affect future free cash flow generation.