Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than a year ago. Operating cash flow and free cash flow improved sequentially and were higher year-over-year, with the free cash flow margin strengthening from both comparison periods.
- Operating cash flow as a proportion of revenue was higher than both the prior quarter and the same quarter last year, reflecting improved cash conversion. Capital expenditure remained low relative to operating cash flow, resulting in free cash flow closely tracking operating cash flow.
- Compared to the immediately preceding quarter, revenue was slightly higher while operating cash flow and free cash flow were substantially higher, leading to a stronger free cash flow margin. Versus the same quarter one year earlier, revenue was higher and operating cash flow and free cash flow were also higher, with the free cash flow margin slightly improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$15.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$5.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.1B
Cash generated by operations before capital spending.
CapEx
$59.0M
Capital spending and related asset purchases.
FCF margin
24.9%
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 | $18.1B | $3.3B | $68.0M | $3.2B | 17.6% |
| 2024-09-30 | $19.7B | $4.6B | $57.0M | $4.6B | 23.1% |
| 2024-12-31 | $20.3B | $3.0B | $110.0M | $2.9B | 14.3% |
| 2025-03-31 | $20.4B | $5.1B | $59.0M | $5.1B | 24.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 198.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | 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 Strength
Operating cash flow was higher than both the prior quarter and the same quarter last year, and the increase was proportionally larger than the change in revenue. This was the strongest observable driver of free cash flow improvement.
The higher operating cash flow directly lifted free cash flow and the free cash flow margin in the current quarter.
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 higher than both the prior quarter and the same quarter last year, reflecting improved cash conversion. Capital expenditure remained low relative to operating cash flow, resulting in free cash flow closely tracking operating cash flow.
Compared to the immediately preceding quarter, revenue was slightly higher while operating cash flow and free cash flow were substantially higher, leading to a stronger free cash flow margin. Versus the same quarter one year earlier, revenue was higher and operating cash flow and free cash flow were also higher, with the free cash flow margin slightly improved.
Monitor the trend in capital expenditure, which was lower sequentially but higher year-over-year, as changes could affect the gap between operating cash flow and free cash flow.