Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened compared to both the prior quarter and the same quarter last year, as free cash flow margin contracted. Operating cash flow improved sequentially but remained lower than the year-ago level.
- Revenue was stable relative to the prior quarter, while operating cash flow increased, leading to higher free cash flow. However, capital expenditure also rose, and the resulting free cash flow margin improved from the prior quarter but was lower than the same quarter last year.
- Compared to the prior quarter, free cash flow and margin improved, driven by higher operating cash flow despite increased capital expenditure. Versus the same quarter last year, free cash flow and margin declined, as operating cash flow was lower and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$955.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$454.0M
Capital spending and related asset purchases.
FCF margin
5.3%
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 | $18.1B | $1.9B | $370.0M | $1.5B | 8.3% |
| 2024-09-29 | $17.1B | $2.4B | $355.0M | $2.1B | 12.2% |
| 2024-12-31 | $18.6B | $1.0B | $582.0M | $441.0M | 2.4% |
| 2025-03-30 | $18.0B | $1.4B | $454.0M | $955.0M | 5.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 55.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$18.5B | 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 Decline
Operating cash flow was lower than the same quarter last year, which directly reduced free cash flow despite a sequential improvement. The filing notes that costs incurred in excess of funds obligated or before contract award negatively affect cash flows, and tariff-related cost increases may also impact cash flows.
A sustained lower operating cash flow would continue to pressure free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to the prior quarter, while operating cash flow increased, leading to higher free cash flow. However, capital expenditure also rose, and the resulting free cash flow margin improved from the prior quarter but was lower than the same quarter last year.
Compared to the prior quarter, free cash flow and margin improved, driven by higher operating cash flow despite increased capital expenditure. Versus the same quarter last year, free cash flow and margin declined, as operating cash flow was lower and capital expenditure was higher.
Monitor the trajectory of operating cash flow, as it is the primary source of liquidity and has declined from the year-ago level.