Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the same quarter last year but declined from the prior quarter. Free cash flow and its margin weakened relative to both comparison periods, driven by a reduction in operating cash flow despite lower capital expenditure.
- Cash conversion from revenue to free cash flow weakened, as operating cash flow declined more than capital expenditure, resulting in a lower free cash flow margin.
- Compared to the prior quarter, revenue and operating cash flow were both lower, while capital expenditure also decreased, leading to a substantially lower free cash flow. Versus the same quarter last year, revenue was stable but operating cash flow and free cash flow were lower, though capital expenditure was reduced.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$363.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$911.0M
Cash generated by operations before capital spending.
CapEx
$548.0M
Capital spending and related asset purchases.
FCF margin
2.0%
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 |
|---|---|---|---|---|---|
| 2024-05-03 | $21.4B | $4.3B | $382.0M | $3.9B | 18.2% |
| 2024-08-02 | $23.6B | $3.2B | $426.0M | $2.7B | 11.6% |
| 2024-11-01 | $20.2B | $1.3B | $571.0M | $728.0M | 3.6% |
| 2025-01-31 | $18.6B | $911.0M | $548.0M | $363.0M | 2.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 32.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$33.6B | 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 compared to both the prior quarter and the same quarter a year ago, outweighing the benefit of lower capital expenditures.
This pressured free cash flow and margin, which declined relative to both periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion from revenue to free cash flow weakened, as operating cash flow declined more than capital expenditure, resulting in a lower free cash flow margin.
Compared to the prior quarter, revenue and operating cash flow were both lower, while capital expenditure also decreased, leading to a substantially lower free cash flow. Versus the same quarter last year, revenue was stable but operating cash flow and free cash flow were lower, though capital expenditure was reduced.
Monitor the trajectory of operating cash flow, as its decline was the primary factor behind the lower free cash flow.