Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved versus the prior quarter, while capital expenditure increased, resulting in a lower free cash flow. Compared to the same quarter last year, free cash flow improved on lower capital expenditure and slightly higher operating cash flow.
- The free cash flow margin declined from the previous quarter, reflecting a higher proportion of capital expenditure relative to operating cash flow. Revenue conversion into operating cash flow remained stable compared to a year ago.
- Revenue and operating cash flow were higher than the prior quarter, but free cash flow and free cash flow margin decreased significantly due to elevated capital expenditure. Compared to the same quarter a year ago, revenue was lower while free cash flow and margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$466.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.1B
Cash generated by operations before capital spending.
CapEx
$1.7B
Capital spending and related asset purchases.
FCF margin
8.0%
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 | $6.8B | $2.4B | $1.8B | $623.0M | 9.2% |
| 2024-09-30 | $7.0B | $3.7B | $1.7B | $2.0B | 28.5% |
| 2024-12-31 | $2.2B | $3.4B | $1.0B | $2.3B | 108.0% |
| 2025-03-31 | $5.8B | $2.1B | $1.7B | $466.0M | 8.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 49.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 28.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$22.2B | 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 Increase
Operating cash flow improved from both the prior quarter and the same quarter last year, providing a stronger base for free cash flow generation.
Higher operating cash flow supported free cash flow improvement year-over-year despite an increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The free cash flow margin declined from the previous quarter, reflecting a higher proportion of capital expenditure relative to operating cash flow. Revenue conversion into operating cash flow remained stable compared to a year ago.
Revenue and operating cash flow were higher than the prior quarter, but free cash flow and free cash flow margin decreased significantly due to elevated capital expenditure. Compared to the same quarter a year ago, revenue was lower while free cash flow and margin improved.
Monitor the trend in capital expenditure relative to operating cash flow, as an increase in the proportion could pressure free cash flow margins.