Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's free cash flow margin was 25.3%, with operating cash flow funding capital expenditure. Revenue was slightly lower than the prior quarter but higher than the same quarter last year, and the company's filing notes a strong financial position with sufficient liquidity for operating needs.
- Revenue converted to operating cash flow, which after capital expenditure yielded free cash flow. The free cash flow margin of 25.3% reflects the conversion efficiency.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow improved significantly, while revenue was slightly lower. Versus the same quarter one year earlier, revenue and operating cash flow were higher, but free cash flow margin was slightly lower due to higher capital expenditure.
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
$2.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.6B
Cash generated by operations before capital spending.
CapEx
$476.0M
Capital spending and related asset purchases.
FCF margin
25.3%
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 |
|---|---|---|---|---|---|
| 2024-04-26 | $8.6B | $2.8B | $426.0M | $2.4B | 27.4% |
| 2024-07-26 | $7.9B | $986.0M | $520.0M | $466.0M | 5.9% |
| 2024-10-25 | $8.4B | $958.0M | $404.0M | $554.0M | 6.6% |
| 2025-01-24 | $8.3B | $2.6B | $476.0M | $2.1B | 25.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 162.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.7% | 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 Improvement
The strongest observable driver was the significant increase in operating cash flow from the prior quarter, which directly boosted free cash flow. The filing context confirms a strong financial position and liquidity flexibility.
This improvement strengthened free cash flow generation and supported the quarter's overall cash conversion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue converted to operating cash flow, which after capital expenditure yielded free cash flow. The free cash flow margin of 25.3% reflects the conversion efficiency.
Compared to the immediately preceding quarter, operating cash flow and free cash flow improved significantly, while revenue was slightly lower. Versus the same quarter one year earlier, revenue and operating cash flow were higher, but free cash flow margin was slightly lower due to higher capital expenditure.
Monitor the level of capital expenditure relative to operating cash flow, as it increased from both prior periods.