Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow and free cash flow margin improved compared to both the prior quarter and the same quarter a year earlier, even as revenue declined. The improvement was driven by a reduction in capital expenditure relative to the prior quarter.
- Revenue was lower than the prior quarter, and operating cash flow also decreased. However, with a lower capital expenditure, free cash flow increased and the free cash flow margin improved, indicating stronger cash conversion from revenue.
- Sequentially, revenue and operating cash flow declined, but a lower capital expenditure led to higher free cash flow and an improved margin. Year-over-year, revenue was lower while operating cash flow was similar; capital expenditure was comparable, yet free cash flow and margin improved.
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
$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$551.0M
Capital spending and related asset purchases.
FCF margin
31.5%
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 | $6.5B | $1.7B | $628.0M | $1.1B | 16.3% |
| 2024-09-30 | $6.9B | $2.7B | $794.0M | $1.9B | 28.3% |
| 2024-12-31 | $6.4B | $2.6B | $807.0M | $1.8B | 28.6% |
| 2025-03-31 | $6.0B | $2.4B | $551.0M | $1.9B | 31.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 100.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.3% | 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.
Capital Expenditure Reduction
Capital expenditure decreased from the prior quarter, which allowed free cash flow to rise despite lower revenue.
Lower capital spending enhanced cash generation efficiency in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, and operating cash flow also decreased. However, with a lower capital expenditure, free cash flow increased and the free cash flow margin improved, indicating stronger cash conversion from revenue.
Sequentially, revenue and operating cash flow declined, but a lower capital expenditure led to higher free cash flow and an improved margin. Year-over-year, revenue was lower while operating cash flow was similar; capital expenditure was comparable, yet free cash flow and margin improved.
Monitor the level of capital expenditure in future quarters, as the current period's reduction may not continue.