Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened significantly versus both the prior quarter and the same quarter last year, driven by a sharp decline in operating cash flow. Revenue was lower than the preceding quarter but higher than a year ago.
- Operating cash flow declined substantially while capital expenditure also decreased, leading to a proportionally larger drop in free cash flow. The free cash flow margin narrowed compared with both prior periods, indicating less efficient cash conversion from revenue.
- Compared with the immediately preceding quarter, operating cash flow, free cash flow, and margin all weakened notably, while capital expenditure was lower. Versus the same quarter one year earlier, operating cash flow and free cash flow were lower, capital expenditure was higher, and margin narrowed.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$11.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.6B
Cash generated by operations before capital spending.
CapEx
$214.0M
Capital spending and related asset purchases.
FCF margin
21.3%
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 |
|---|---|---|---|---|---|
| 2024-06-23 | $9.4B | $3.1B | $387.0M | $2.7B | 28.4% |
| 2024-09-29 | $10.2B | $2.6B | $256.0M | $2.4B | 23.3% |
| 2024-12-29 | $11.7B | $4.6B | $277.0M | $4.3B | 36.9% |
| 2025-03-30 | $11.0B | $2.6B | $214.0M | $2.3B | 21.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 83.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.1B | 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
Operating cash flow fell sharply from both the prior quarter and the year-ago period, despite revenue being higher than last year. This was the strongest observable driver of the reduced free cash flow.
The lower operating cash flow directly compressed free cash flow and margin, making cash conversion less efficient than in the two comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow declined substantially while capital expenditure also decreased, leading to a proportionally larger drop in free cash flow. The free cash flow margin narrowed compared with both prior periods, indicating less efficient cash conversion from revenue.
Compared with the immediately preceding quarter, operating cash flow, free cash flow, and margin all weakened notably, while capital expenditure was lower. Versus the same quarter one year earlier, operating cash flow and free cash flow were lower, capital expenditure was higher, and margin narrowed.
Monitor whether operating cash flow recovers in coming quarters, as its decline was the primary factor behind the weakened free cash flow.