Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both improved compared to the prior quarter and the same quarter last year. The free cash flow margin strengthened versus the year-ago period but weakened from the preceding quarter.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin was lower than the operating cash flow margin, reflecting the impact of capital spending.
- Compared to the preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$638.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$855.0M
Cash generated by operations before capital spending.
CapEx
$217.0M
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 | $6.5B | $1.1B | $103.0M | $953.0M | 14.7% |
| 2024-09-30 | $7.1B | $31.0M | $114.0M | -$83.0M | -1.2% |
| 2024-12-31 | $6.8B | $952.0M | $186.0M | $766.0M | 11.3% |
| 2025-03-31 | $8.5B | $855.0M | $217.0M | $638.0M | 7.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 85.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth Supporting Cash Generation
Revenue was higher than both the prior quarter and the year-ago quarter, and operating cash flow improved significantly year-over-year. This provided a stronger base for free cash flow generation.
Higher revenue contributed to a year-over-year increase in free cash flow and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin was lower than the operating cash flow margin, reflecting the impact of capital spending.
Compared to the preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the relationship between operating cash flow and capital expenditure, as the current quarter's free cash flow margin declined from the prior quarter despite higher revenue.