Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved sharply from the prior quarter but weakened compared to the same quarter last year. Operating cash flow was the primary driver of the sequential improvement.
- Revenue was lower than a year ago but higher than the prior quarter. Operating cash flow increased substantially from the prior quarter, while capital expenditure was slightly lower, resulting in a much higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, free cash flow margin improved from two percent to nearly fourteen percent, driven by higher operating cash flow. Versus the same quarter last year, free cash flow margin weakened from over eighteen percent, as both revenue and operating cash flow were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.4B
Cash generated by operations before capital spending.
CapEx
$518.0M
Capital spending and related asset purchases.
FCF margin
13.7%
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 |
|---|---|---|---|---|---|
| 2024-08-02 | $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% |
| 2025-05-02 | $20.9B | $3.4B | $518.0M | $2.9B | 13.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 174.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | 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 Recovery
Operating cash flow increased sharply from the prior quarter, more than offsetting a modest rise in capital expenditure and driving free cash flow higher.
This was the strongest observable driver of the sequential improvement in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than a year ago but higher than the prior quarter. Operating cash flow increased substantially from the prior quarter, while capital expenditure was slightly lower, resulting in a much higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, free cash flow margin improved from two percent to nearly fourteen percent, driven by higher operating cash flow. Versus the same quarter last year, free cash flow margin weakened from over eighteen percent, as both revenue and operating cash flow were lower.
Monitor whether operating cash flow can sustain its sequential improvement given the year-over-year decline.