Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin were lower than the prior quarter and the same quarter last year, driven by a decrease in operating cash flow and higher capital expenditure. Revenue was slightly lower compared to both periods.
- Revenue was slightly lower than the prior quarter and the same quarter a year earlier. Operating cash flow decreased more sharply, while capital expenditure increased, resulting in a lower free cash flow and a weakened free cash flow margin.
- Compared with the immediately preceding quarter, revenue was slightly lower, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were lower. Relative to the same quarter one year earlier, revenue was slightly lower, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$17.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.5B
Cash generated by operations before capital spending.
CapEx
$1.3B
Capital spending and related asset purchases.
FCF margin
7.5%
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 | $16.1B | $5.6B | $791.0M | $4.8B | 30.1% |
| 2024-09-30 | $16.7B | $9.3B | $783.0M | $8.5B | 51.1% |
| 2024-12-31 | $15.6B | $3.5B | $937.0M | $2.5B | 16.1% |
| 2025-03-31 | $15.5B | $2.5B | $1.3B | $1.2B | 7.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 23.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$26.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Decline in Operating Cash Flow
Operating cash flow was lower than both the prior quarter and the same quarter last year, with the filing noting that milestone payments related to collaborations contributed to the reduction.
The lower operating cash flow, combined with higher capital expenditure, drove the decline in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter and the same quarter a year earlier. Operating cash flow decreased more sharply, while capital expenditure increased, resulting in a lower free cash flow and a weakened free cash flow margin.
Compared with the immediately preceding quarter, revenue was slightly lower, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were lower. Relative to the same quarter one year earlier, revenue was slightly lower, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were lower.
Monitor the level of milestone payments, as they reduced operating cash flow in the current quarter, according to the filing.