Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved substantially from both the preceding quarter and the year-ago quarter, driving a sharp increase in free cash flow. Capital expenditure was lower than the preceding quarter but higher than the year-ago quarter, while revenue continued to grow.
- Revenue rose compared to both the prior quarter and the year-ago period, while operating cash flow grew at a faster pace, resulting in a higher free cash flow margin.
- Compared to the preceding quarter, operating cash flow was higher and capital expenditure was lower, leading to a stronger free cash flow. Versus the same quarter one year earlier, both operating cash flow and free cash flow were higher, while revenue also showed growth.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.8B
Cash generated by operations before capital spending.
CapEx
$128.3M
Capital spending and related asset purchases.
FCF margin
25.2%
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 | $9.6B | $1.3B | $78.3M | $1.2B | 12.7% |
| 2024-09-30 | $9.8B | $2.3B | $126.9M | $2.2B | 22.3% |
| 2024-12-31 | $10.2B | $1.5B | $158.7M | $1.4B | 13.5% |
| 2025-03-31 | $10.5B | $2.8B | $128.3M | $2.7B | 25.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | 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.
Operating Cash Flow Growth
Operating cash flow was higher compared to both the preceding quarter and the year-ago quarter, outpacing revenue growth and resulting in a stronger free cash flow margin.
This improvement was the primary factor behind the increase in free cash flow for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose compared to both the prior quarter and the year-ago period, while operating cash flow grew at a faster pace, resulting in a higher free cash flow margin.
Compared to the preceding quarter, operating cash flow was higher and capital expenditure was lower, leading to a stronger free cash flow. Versus the same quarter one year earlier, both operating cash flow and free cash flow were higher, while revenue also showed growth.
Monitor the trend in capital expenditure relative to operating cash flow, as current lower spending contributed to cash flow improvement.