Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year. Free cash flow was lower than both comparable periods, primarily due to higher capital expenditure and a decline in operating cash flow relative to the prior quarter.
- Operating cash flow was higher than the year-ago quarter but lower than the prior quarter. Capital expenditure rose compared to both periods, resulting in free cash flow that was lower than both the prior quarter and the year-ago quarter, and the free cash flow margin weakened accordingly.
- Compared to the prior quarter, revenue was higher but operating cash flow was lower, capital expenditure was slightly lower, and free cash flow was significantly lower. Compared to the same quarter last year, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$396.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$766.0M
Capital spending and related asset purchases.
FCF margin
10.3%
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 | $3.2B | $1.7B | $581.0M | $1.1B | 34.4% |
| 2024-09-30 | $3.3B | $1.2B | $657.0M | $592.0M | 18.0% |
| 2024-12-31 | $3.6B | $1.5B | $772.0M | $738.0M | 20.7% |
| 2025-03-31 | $3.9B | $1.2B | $766.0M | $396.0M | 10.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 55.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 19.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$32.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure was higher than both the prior quarter and the year-ago quarter, which was the strongest observable factor reducing free cash flow despite higher revenue.
Higher capital expenditure absorbed a larger portion of operating cash flow, weakening free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the year-ago quarter but lower than the prior quarter. Capital expenditure rose compared to both periods, resulting in free cash flow that was lower than both the prior quarter and the year-ago quarter, and the free cash flow margin weakened accordingly.
Compared to the prior quarter, revenue was higher but operating cash flow was lower, capital expenditure was slightly lower, and free cash flow was significantly lower. Compared to the same quarter last year, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was lower.
Monitor the trend in capital expenditure, as it was higher than both the prior quarter and the year-ago quarter, directly impacting free cash flow.