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 decreased compared to the prior quarter and the same quarter last year. Free cash flow margin weakened versus both periods, reflecting a lower conversion of revenue into free cash flow.
- Operating cash flow as a proportion of revenue was lower than both the preceding quarter and the year-ago quarter, and capital expenditure was also lower in absolute terms. The resulting free cash flow margin declined, indicating a weaker cash conversion efficiency.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was slightly lower, operating cash flow and free cash flow were lower, and free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$15.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.7B
Cash generated by operations before capital spending.
CapEx
$859.0M
Capital spending and related asset purchases.
FCF margin
14.4%
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 | $20.5B | $5.8B | $783.0M | $5.0B | 24.2% |
| 2024-09-30 | $21.7B | $4.3B | $993.0M | $3.3B | 15.2% |
| 2024-12-31 | $21.9B | $4.8B | $925.0M | $3.9B | 17.8% |
| 2025-03-31 | $19.8B | $3.7B | $859.0M | $2.8B | 14.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 75.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | 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 Decline
The decrease in operating cash flow was the strongest observable driver of the lower free cash flow, as it fell more sharply than the reduction in capital expenditure. This occurred even as revenue declined modestly.
The lower operating cash flow directly reduced free cash flow and compressed the 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 as a proportion of revenue was lower than both the preceding quarter and the year-ago quarter, and capital expenditure was also lower in absolute terms. The resulting free cash flow margin declined, indicating a weaker cash conversion efficiency.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was slightly lower, operating cash flow and free cash flow were lower, and free cash flow margin weakened.
Monitor the trend in free cash flow margin, as it declined sequentially and year-over-year despite lower capital expenditure.