Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned strongly positive this quarter, driving a substantial free cash flow margin. This contrasts sharply with the negative free cash flow in both the prior quarter and the same quarter last year.
- Revenue was slightly lower than the prior quarter, but operating cash flow shifted from deeply negative to positive, resulting in a free cash flow margin that improved from deeply negative to strongly positive. Capital expenditure was modestly lower than both comparison periods.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved from deeply negative to positive, and the free cash flow margin strengthened significantly. Versus the same quarter one year earlier, the same metrics also shifted from negative to positive, with a markedly higher margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$10.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$226.0M
Capital spending and related asset purchases.
FCF margin
66.1%
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 | $3.2B | -$7.6B | $213.0M | -$7.9B | -246.2% |
| 2024-09-30 | $3.3B | $2.7B | $234.0M | $2.5B | 75.9% |
| 2024-12-31 | $3.4B | -$7.4B | $249.0M | -$7.7B | -225.1% |
| 2025-03-31 | $3.3B | $2.4B | $226.0M | $2.2B | 66.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 337.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.9% | 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 Reversal
Operating cash flow moved from a large negative balance in both the prior quarter and the year-ago quarter to a substantial positive figure this quarter. This was the primary factor behind the swing in free cash flow and the improvement in free cash flow margin.
The positive operating cash flow directly enabled a healthy free cash flow and a strong margin for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter, but operating cash flow shifted from deeply negative to positive, resulting in a free cash flow margin that improved from deeply negative to strongly positive. Capital expenditure was modestly lower than both comparison periods.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved from deeply negative to positive, and the free cash flow margin strengthened significantly. Versus the same quarter one year earlier, the same metrics also shifted from negative to positive, with a markedly higher margin.
Monitor whether operating cash flow can sustain its positive level in future quarters, given the large swings seen in the comparison periods.