Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow margin was lower than both the immediately preceding quarter and the same quarter one year earlier, despite higher revenue. The decline in operating cash flow relative to the prior period was the primary factor behind the reduced cash conversion.
- Revenue increased compared to the prior quarter, but operating cash flow decreased, leading to a lower free cash flow and margin. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter.
- Relative to the immediately preceding quarter, revenue improved, while operating cash flow and free cash flow weakened, resulting in a lower margin. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow were lower, with margin also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$881.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$966.0M
Cash generated by operations before capital spending.
CapEx
$85.0M
Capital spending and related asset purchases.
FCF margin
27.3%
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 | $2.9B | $1.2B | $75.0M | $1.1B | 38.7% |
| 2024-09-30 | $3.0B | $898.0M | $79.0M | $819.0M | 27.0% |
| 2024-12-31 | $3.0B | $1.5B | $194.0M | $1.3B | 43.3% |
| 2025-03-31 | $3.2B | $966.0M | $85.0M | $881.0M | 27.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 110.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$19.5B | 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 contraction
Operating cash flow decreased compared to both the prior quarter and the year-ago period, even as revenue increased.
This weakened cash conversion reduces the company's ability to generate free cash from its revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to the prior quarter, but operating cash flow decreased, leading to a lower free cash flow and margin. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter.
Relative to the immediately preceding quarter, revenue improved, while operating cash flow and free cash flow weakened, resulting in a lower margin. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow were lower, with margin also lower.
Monitor the trend of operating cash flow relative to revenue, as it contracted despite revenue growth.