Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened sequentially but was stable compared to the same quarter last year. Operating cash flow declined from the prior quarter while capital expenditure remained unchanged, resulting in lower free cash flow.
- Revenue was unchanged from a year ago, but operating cash flow improved, leading to a slightly higher free cash flow margin. Sequentially, revenue decreased and operating cash flow fell more sharply, causing free cash flow margin to decline.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was stable. Versus the same quarter last year, revenue was unchanged, operating cash flow was higher, and free cash flow was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$891.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$1.3B
Capital spending and related asset purchases.
FCF margin
11.0%
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 | $8.3B | $1.9B | $1.1B | $796.0M | 9.6% |
| 2024-09-30 | $8.4B | $2.7B | $1.1B | $1.7B | 19.9% |
| 2024-12-31 | $8.3B | $2.8B | $1.3B | $1.6B | 18.8% |
| 2025-03-31 | $8.1B | $2.2B | $1.3B | $891.0M | 11.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 53.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 15.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$14.1B | 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 Decline
Operating cash flow decreased from the prior quarter while revenue also fell, but the drop in operating cash flow was proportionally larger. This was the strongest observable driver of the lower free cash flow.
The decline in operating cash flow directly reduced free cash flow despite stable capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from a year ago, but operating cash flow improved, leading to a slightly higher free cash flow margin. Sequentially, revenue decreased and operating cash flow fell more sharply, causing free cash flow margin to decline.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was stable. Versus the same quarter last year, revenue was unchanged, operating cash flow was higher, and free cash flow was slightly lower.
Monitor the trend in operating cash flow relative to revenue, as it declined more than revenue sequentially.