Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased from the prior quarter but was slightly lower than the same quarter last year, reflecting a mixed cash conversion performance. Operating cash flow improved notably while capital expenditure also rose.
- Revenue and operating cash flow were higher both sequentially and year-over-year. Free cash flow margin improved from the prior quarter but weakened compared to the prior year, as capital expenditure grew faster than operating cash flow on a relative basis.
- Compared to the prior quarter, free cash flow and margin improved significantly due to a sharp increase in operating cash flow. Relative to the same quarter last year, free cash flow was slightly lower and margin was lower, as capital expenditure increased more than operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$69.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$20.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$37.0B
Cash generated by operations before capital spending.
CapEx
$16.7B
Capital spending and related asset purchases.
FCF margin
29.0%
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 | $64.7B | $37.2B | $13.9B | $23.3B | 36.0% |
| 2024-09-30 | $65.6B | $34.2B | $14.9B | $19.3B | 29.4% |
| 2024-12-31 | $69.6B | $22.3B | $15.8B | $6.5B | 9.3% |
| 2025-03-31 | $70.1B | $37.0B | $16.7B | $20.3B | 29.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 78.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 23.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$14.1B | 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
Operating cash flow was higher than the prior quarter and also higher than a year ago, supporting free cash flow despite increased capital expenditure.
The higher operating cash flow drove the improvement in free cash flow from the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow were higher both sequentially and year-over-year. Free cash flow margin improved from the prior quarter but weakened compared to the prior year, as capital expenditure grew faster than operating cash flow on a relative basis.
Compared to the prior quarter, free cash flow and margin improved significantly due to a sharp increase in operating cash flow. Relative to the same quarter last year, free cash flow was slightly lower and margin was lower, as capital expenditure increased more than operating cash flow.
Monitor the trajectory of capital expenditure given its continued growth from both comparable periods.