Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, revenue decreased sequentially but increased compared to the same quarter last year. Free cash flow turned positive from a negative position in the prior quarter and improved year over year, resulting in a stronger free cash flow margin.
- The conversion from revenue to free cash flow strengthened significantly. Operating cash flow was the primary contributor, while capital expenditure remained relatively stable.
- Compared to the immediately preceding quarter, free cash flow improved markedly due to a swing in operating cash flow from negative to positive. Relative to the same quarter one year earlier, free cash flow was higher, supported by both higher revenue and improved operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$7.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$7.7B
Cash generated by operations before capital spending.
CapEx
$169.0M
Capital spending and related asset purchases.
FCF margin
8.3%
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 | $79.3B | -$1.4B | $167.0M | -$1.5B | -2.0% |
| 2024-09-30 | $93.7B | $2.1B | $75.0M | $2.0B | 2.2% |
| 2024-12-31 | $95.3B | -$2.4B | $126.0M | -$2.5B | -2.6% |
| 2025-03-31 | $90.8B | $7.7B | $169.0M | $7.6B | 8.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 601.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | $37.0M | 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 Restoration
The current quarter's operating cash flow recovered from a negative position in the prior quarter to a positive level, driving the turnaround in free cash flow. This reversal was the most significant factor in the quarter's performance.
The improved operating cash flow enabled the company to achieve a positive free cash flow margin, contrasting with the negative margin in the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The conversion from revenue to free cash flow strengthened significantly. Operating cash flow was the primary contributor, while capital expenditure remained relatively stable.
Compared to the immediately preceding quarter, free cash flow improved markedly due to a swing in operating cash flow from negative to positive. Relative to the same quarter one year earlier, free cash flow was higher, supported by both higher revenue and improved operating cash flow.
Monitor the trend in capital expenditure, which increased from the prior quarter but decreased from the year-ago level.