Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Micron's free cash flow turned positive with a significant improvement in margin, reflecting higher revenue and operating cash flow alongside lower capital expenditure. Both sequential and year-over-year comparisons show strengthened cash generation.
- Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow grew at a faster pace, leading to an improved free cash flow margin. Capital expenditure declined from the previous quarter but was higher than a year ago.
- Sequentially, free cash flow shifted from negative to positive, and the margin improved markedly. Compared to the same quarter one year earlier, free cash flow and margin were both higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.6B
Cash generated by operations before capital spending.
CapEx
$2.9B
Capital spending and related asset purchases.
FCF margin
18.0%
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 |
|---|---|---|---|---|---|
| 2024-08-29 | $7.8B | $3.4B | $3.1B | $285.0M | 3.7% |
| 2024-11-28 | $8.7B | $3.2B | $3.2B | $38.0M | 0.4% |
| 2025-02-27 | $8.1B | $3.9B | $4.1B | -$113.0M | -1.4% |
| 2025-05-29 | $9.3B | $4.6B | $2.9B | $1.7B | 18.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 88.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 31.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Free Cash Flow Turnaround
The combination of higher operating cash flow and lower capital expenditure drove free cash flow from negative to positive, with the margin expanding significantly.
The improved free cash flow provides greater financial flexibility for the company.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow grew at a faster pace, leading to an improved free cash flow margin. Capital expenditure declined from the previous quarter but was higher than a year ago.
Sequentially, free cash flow shifted from negative to positive, and the margin improved markedly. Compared to the same quarter one year earlier, free cash flow and margin were both higher.
Capital expenditure levels, given their recent variability, warrant monitoring as they directly impact free cash flow.