Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Marriott's free cash flow improved in the current quarter, driven by higher operating cash flow and slightly lower capital expenditure. The cash conversion margin strengthened relative to both the prior quarter and the same quarter last year.
- Operating cash flow was substantially higher than capital expenditure, resulting in robust free cash flow. The free cash flow margin improved as revenue remained relatively stable while cash generation increased.
- Compared to the prior quarter, operating cash flow and free cash flow were higher, while revenue was slightly lower. Year over year, both operating cash flow and free cash flow improved, with capital expenditure reduced.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$951.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$142.0M
Capital spending and related asset purchases.
FCF margin
14.7%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $6.4B | $318.0M | $342.0M | -$24.0M | -0.4% |
| 2025-03-31 | $6.3B | $647.0M | $135.0M | $512.0M | 8.2% |
| 2025-06-30 | $6.7B | $643.0M | $155.0M | $488.0M | 7.2% |
| 2025-09-30 | $6.5B | $1.1B | $142.0M | $951.0M | 14.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 130.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | $655.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Higher Operating Cash Flow
Operating cash flow rose in the current quarter, providing the primary support for free cash flow improvement. This increase, combined with stable revenue, lifted the cash conversion margin.
The increase in operating cash flow directly strengthened free cash flow and the overall cash conversion margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than capital expenditure, resulting in robust free cash flow. The free cash flow margin improved as revenue remained relatively stable while cash generation increased.
Compared to the prior quarter, operating cash flow and free cash flow were higher, while revenue was slightly lower. Year over year, both operating cash flow and free cash flow improved, with capital expenditure reduced.
Monitor the company's progress in optimizing its debt maturity structure and working capital reduction as outlined in the liquidity discussion.