Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin held steady at the prior year's level, while operating cash flow and free cash flow both decreased compared to the immediately preceding quarter. Revenue was lower than both the prior quarter and the year-ago quarter.
- Operating cash flow as a proportion of revenue was higher than the free cash flow margin, reflecting capital expenditure that was modest relative to operating cash flow. The conversion from revenue to free cash flow remained stable compared to the same quarter one year earlier.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, revenue and operating cash flow were lower, while free cash flow and free cash flow margin were stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.7B
Cash generated by operations before capital spending.
CapEx
$38.0M
Capital spending and related asset purchases.
FCF margin
51.0%
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 | $6.2B | -$75.0M | $29.0M | -$104.0M | -1.7% |
| 2024-09-30 | $6.3B | $2.6B | $31.0M | $2.6B | 41.2% |
| 2024-12-31 | $6.0B | $3.3B | $47.0M | $3.3B | 55.1% |
| 2025-03-31 | $5.3B | $2.7B | $38.0M | $2.7B | 51.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 249.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$21.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stable Free Cash Flow Margin
The free cash flow margin was identical to the year-ago quarter, indicating that the relationship between free cash flow and revenue remained consistent despite lower revenue. Operating cash flow also declined proportionally with revenue.
This stability in margin suggests that cash generation efficiency relative to revenue was maintained year over year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than the free cash flow margin, reflecting capital expenditure that was modest relative to operating cash flow. The conversion from revenue to free cash flow remained stable compared to the same quarter one year earlier.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, revenue and operating cash flow were lower, while free cash flow and free cash flow margin were stable.
Monitor the trend in revenue, as it declined from both the prior quarter and the year-ago period while free cash flow margin remained unchanged.