Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, driven by a higher operating cash flow relative to capital expenditure. The free cash flow margin improved from negative in both the prior quarter and the same quarter last year.
- Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased compared to both periods, while capital expenditure was stable versus last year and slightly lower than the prior quarter. The combination produced a positive free cash flow and a positive margin, a significant shift from the negative margins in the two comparison quarters.
- Compared to the prior quarter, free cash flow improved from negative to positive, driven by higher operating cash flow and slightly lower capital expenditure. Versus the same quarter last year, free cash flow also turned positive, as operating cash flow rose while capital expenditure remained stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$213.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.8B
Cash generated by operations before capital spending.
CapEx
$2.6B
Capital spending and related asset purchases.
FCF margin
3.6%
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 | $6.0B | $711.0M | $2.3B | -$1.6B | -26.5% |
| 2024-09-30 | $5.9B | $3.1B | $2.6B | $526.0M | 8.9% |
| 2024-12-31 | $6.6B | $1.9B | $2.8B | -$896.0M | -13.5% |
| 2025-03-31 | $6.0B | $2.8B | $2.6B | $213.0M | 3.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 33.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 44.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$55.3B | 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 Strength
Operating cash flow was the strongest observable driver, increasing from both the prior quarter and the year-ago quarter. This improvement was the primary factor behind the shift to positive free cash flow.
Higher operating cash flow enabled the company to cover capital expenditure and generate positive 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 was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased compared to both periods, while capital expenditure was stable versus last year and slightly lower than the prior quarter. The combination produced a positive free cash flow and a positive margin, a significant shift from the negative margins in the two comparison quarters.
Compared to the prior quarter, free cash flow improved from negative to positive, driven by higher operating cash flow and slightly lower capital expenditure. Versus the same quarter last year, free cash flow also turned positive, as operating cash flow rose while capital expenditure remained stable.
Monitor whether operating cash flow can sustain its current level relative to capital expenditure in future quarters.