Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased versus both the prior quarter and the same quarter last year, but operating cash flow declined, leaving free cash flow flat compared to the prior quarter and lower than the year-ago level. The free cash flow margin narrowed relative to both periods, reflecting weaker cash conversion from revenue.
- Operating cash flow of the current quarter was lower than both the preceding quarter and the same quarter last year, while capital expenditure was slightly below the prior quarter but above the year-ago level. Consequently, free cash flow remained unchanged from the prior quarter and declined year over year, and the free cash flow margin decreased compared with both periods.
- Compared with the immediately preceding quarter, revenue was higher, operating cash flow was lower, capital expenditure was slightly lower, free cash flow was stable, and free cash flow margin was lower. Versus the same quarter one year earlier, revenue was higher, operating cash flow was lower, capital expenditure was higher, free cash flow was lower, and margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$459.0M
Capital spending and related asset purchases.
FCF margin
23.2%
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 |
|---|---|---|---|---|---|
| 2024-07-26 | $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% |
| 2025-04-25 | $8.9B | $2.5B | $459.0M | $2.1B | 23.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 195.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.1% | 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 decline
Operating cash flow was lower than the prior quarter and the same quarter last year, despite revenue being higher in both comparisons. This decline was the primary factor behind the reduction in free cash flow margin.
Sustained improvement in operating cash flow is needed to support future free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of the current quarter was lower than both the preceding quarter and the same quarter last year, while capital expenditure was slightly below the prior quarter but above the year-ago level. Consequently, free cash flow remained unchanged from the prior quarter and declined year over year, and the free cash flow margin decreased compared with both periods.
Compared with the immediately preceding quarter, revenue was higher, operating cash flow was lower, capital expenditure was slightly lower, free cash flow was stable, and free cash flow margin was lower. Versus the same quarter one year earlier, revenue was higher, operating cash flow was lower, capital expenditure was higher, free cash flow was lower, and margin was lower.
Monitor operating cash flow trends, as revenue growth has not been accompanied by higher cash generation.