Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow margin weakened sequentially but improved year over year.
- Operating cash flow, after deducting capital expenditure, resulted in free cash flow. The free cash flow margin was lower than the prior quarter and higher than the year-ago period. The filing discusses the company's reliance on operating cash flow and capital resources to meet liquidity needs.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all decreased. Compared to the same quarter one year earlier, all metrics increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$15.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$159.0M
Capital spending and related asset purchases.
FCF margin
30.6%
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 | $7.0B | $3.1B | $115.0M | $3.0B | 43.4% |
| 2024-09-30 | $7.4B | $5.1B | $107.0M | $5.0B | 68.2% |
| 2024-12-31 | $7.5B | $4.8B | $95.0M | $4.7B | 63.3% |
| 2025-03-31 | $7.3B | $2.4B | $159.0M | $2.2B | 30.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 67.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential operating cash flow decline
Operating cash flow was lower than the prior quarter, which was the primary factor behind the sequential decrease in free cash flow and margin.
This sequential decline in operating cash flow is a key factor to monitor for future quarters.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow, after deducting capital expenditure, resulted in free cash flow. The free cash flow margin was lower than the prior quarter and higher than the year-ago period. The filing discusses the company's reliance on operating cash flow and capital resources to meet liquidity needs.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all decreased. Compared to the same quarter one year earlier, all metrics increased.
Monitor the level of capital expenditure relative to operating cash flow, as it increased from the prior quarter.