Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow improved compared to the same quarter last year but weakened from the prior quarter. The company's filing notes that the revenue decline was driven by a decrease in one product, partially offset by growth in other products, and unfavorable foreign exchange.
- The company converted revenue into free cash flow at a margin that was higher than a year ago but lower than the prior quarter. Operating cash flow exceeded capital expenditure, yielding positive free cash flow.
- Compared to the preceding quarter, revenue, operating cash flow, and free cash flow were lower, and the margin weakened. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow and free cash flow were higher, and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$11.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.3B
Cash generated by operations before capital spending.
CapEx
$564.0M
Capital spending and related asset purchases.
FCF margin
12.9%
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 | $13.3B | -$1.8B | $637.0M | -$2.4B | -18.2% |
| 2024-09-29 | $17.7B | $6.7B | $651.0M | $6.1B | 34.3% |
| 2024-12-31 | $17.8B | $6.7B | $917.0M | $5.8B | 32.7% |
| 2025-03-30 | $13.7B | $2.3B | $564.0M | $1.8B | 12.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 59.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$60.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year free cash flow improvement
Free cash flow increased from the year-ago quarter, driven by higher operating cash flow and lower capital expenditure. This improvement occurred despite lower revenue.
The improvement in cash conversion efficiency is notable, but the sequential weakening in both revenue and operating cash flow warrants attention.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted revenue into free cash flow at a margin that was higher than a year ago but lower than the prior quarter. Operating cash flow exceeded capital expenditure, yielding positive free cash flow.
Compared to the preceding quarter, revenue, operating cash flow, and free cash flow were lower, and the margin weakened. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow and free cash flow were higher, and the margin improved.
Monitor the trajectory of operating cash flow given its sequential decline from the prior quarter.