Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned deeply negative, driving free cash flow to a large deficit despite lower capital expenditure. Revenue was slightly lower than the prior quarter and the year-ago quarter, while free cash flow margin weakened sharply.
- Revenue was slightly lower than the prior quarter and the year-ago quarter, but operating cash flow swung from positive to negative, resulting in a negative free cash flow and a deeply negative free cash flow margin. Capital expenditure was lower than both comparison periods, yet the cash conversion from revenue to free cash flow was severely impaired.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both turned from positive to negative, and free cash flow margin weakened from positive to negative. Versus the same quarter one year earlier, operating cash flow and free cash flow were lower, and free cash flow margin declined from slightly positive to deeply negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$928.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$5.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$5.2B
Cash generated by operations before capital spending.
CapEx
$309.0M
Capital spending and related asset purchases.
FCF margin
-49.5%
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 |
|---|---|---|---|---|---|
| 2024-06-28 | $12.4B | $3.6B | $422.0M | $3.2B | 25.6% |
| 2024-09-27 | $11.9B | -$1.3B | $469.0M | -$1.7B | -14.6% |
| 2024-12-31 | $11.5B | $4.0B | $803.0M | $3.1B | 27.3% |
| 2025-03-28 | $11.1B | -$5.2B | $309.0M | -$5.5B | -49.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -165.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | 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 Swing
Operating cash flow shifted from positive in both comparison periods to a large negative figure in the current quarter. This change is the strongest observable driver of the free cash flow decline, as capital expenditure was lower.
The negative operating cash flow directly caused free cash flow to turn deeply negative, reversing the positive cash generation seen in prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter and the year-ago quarter, but operating cash flow swung from positive to negative, resulting in a negative free cash flow and a deeply negative free cash flow margin. Capital expenditure was lower than both comparison periods, yet the cash conversion from revenue to free cash flow was severely impaired.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both turned from positive to negative, and free cash flow margin weakened from positive to negative. Versus the same quarter one year earlier, operating cash flow and free cash flow were lower, and free cash flow margin declined from slightly positive to deeply negative.
Monitor whether operating cash flow can return to positive levels in the coming quarter, as the current negative swing is the primary driver of the free cash flow deficit.