Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened compared to both the prior quarter and the same quarter last year, as capital expenditure increased significantly year over year. Operating cash flow rose year over year but fell sequentially, resulting in a lower free cash flow in the current period versus the prior quarter.
- Revenue in the current quarter was lower than the prior quarter but higher than the year-ago quarter. Operating cash flow followed the same pattern, while capital expenditure was higher than both comparison periods. Free cash flow increased year over year but declined sequentially, and free cash flow margin decreased relative to both prior periods.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all declined, while capital expenditure decreased slightly. Versus the same quarter one year earlier, revenue, operating cash flow, and capital expenditure were higher, free cash flow was higher, yet free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$52.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$11.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$24.0B
Cash generated by operations before capital spending.
CapEx
$12.9B
Capital spending and related asset purchases.
FCF margin
26.2%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $39.1B | $19.4B | $8.2B | $11.2B | 28.7% |
| 2024-09-30 | $40.6B | $24.7B | $8.3B | $16.5B | 40.6% |
| 2024-12-31 | $48.4B | $28.0B | $14.4B | $13.6B | 28.0% |
| 2025-03-31 | $42.3B | $24.0B | $12.9B | $11.1B | 26.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 66.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 30.6% | 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 growth
Capital expenditure in the current quarter was higher than both the prior quarter and the same quarter one year earlier. The year-over-year increase was particularly pronounced, while operating cash flow increased at a slower rate, leading to a lower free cash flow margin.
The stronger growth in capital expenditure compared to operating cash flow is the most observable factor weighing on free cash flow margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue in the current quarter was lower than the prior quarter but higher than the year-ago quarter. Operating cash flow followed the same pattern, while capital expenditure was higher than both comparison periods. Free cash flow increased year over year but declined sequentially, and free cash flow margin decreased relative to both prior periods.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all declined, while capital expenditure decreased slightly. Versus the same quarter one year earlier, revenue, operating cash flow, and capital expenditure were higher, free cash flow was higher, yet free cash flow margin was lower.
Monitor the trajectory of capital expenditure relative to operating cash flow, as capital expenditure grew substantially year over year while operating cash flow did not keep pace proportionally.