Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive and improved compared to both the prior quarter and the same quarter a year ago. The improvement was driven by a notable reduction in capital expenditure, while revenue was slightly lower than the prior quarter.
- Operating cash flow was lower than the prior quarter but markedly higher than the same quarter a year ago. Capital expenditure declined substantially from the prior quarter, allowing free cash flow margin to strengthen despite a lower revenue base.
- Compared to the prior quarter, revenue was lower but free cash flow improved as capital spending decreased sharply. Compared to the same quarter last year, revenue was higher and free cash flow swung from negative to positive, supported by a much stronger operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$792.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$513.0M
Capital spending and related asset purchases.
FCF margin
3.9%
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 | $19.7B | $2.7B | $537.0M | $2.2B | 11.1% |
| 2024-09-30 | $20.1B | $2.5B | $552.0M | $2.0B | 9.8% |
| 2024-12-31 | $21.6B | $1.6B | $1.1B | $492.0M | 2.3% |
| 2025-03-31 | $20.3B | $1.3B | $513.0M | $792.0M | 3.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 51.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | 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.
Capital Expenditure Reduction
Capital expenditure dropped substantially from the prior quarter, outpacing the decline in operating cash flow and leading to higher free cash flow. The reduction was also significant compared to the same quarter a year ago.
Lower capital spending was the key driver of the sequential and year-over-year improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but markedly higher than the same quarter a year ago. Capital expenditure declined substantially from the prior quarter, allowing free cash flow margin to strengthen despite a lower revenue base.
Compared to the prior quarter, revenue was lower but free cash flow improved as capital spending decreased sharply. Compared to the same quarter last year, revenue was higher and free cash flow swung from negative to positive, supported by a much stronger operating cash flow.
Monitor the trajectory of capital expenditure, as its notable decline was the primary factor behind the current quarter's free cash flow improvement.