Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, the free cash flow margin was unchanged from the prior quarter and improved compared to the same quarter last year. Operating cash flow increased from a year ago, while capital expenditure also rose.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow, capital expenditure, and free cash flow all decreased sequentially, yet the free cash flow margin remained stable; year-over-year, all three metrics increased and the margin widened.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were lower, though the margin was unchanged. Versus the same quarter one year earlier, revenue, operating cash flow, capital expenditure, and free cash flow were higher, and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$19.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$9.0B
Cash generated by operations before capital spending.
CapEx
$4.3B
Capital spending and related asset purchases.
FCF margin
15.6%
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 | $29.8B | $9.1B | $4.4B | $4.7B | 15.9% |
| 2024-09-30 | $30.2B | $10.2B | $5.3B | $4.9B | 16.3% |
| 2024-12-31 | $32.3B | $11.9B | $6.8B | $5.1B | 15.6% |
| 2025-03-31 | $30.6B | $9.0B | $4.3B | $4.8B | 15.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 109.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.0% | 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.
Free cash flow margin improvement
The free cash flow margin improved year-over-year, supported by a larger increase in operating cash flow relative to revenue. The filing notes that operating cash inflows were aided by receivable sales and DIRECTV distributions.
This margin improvement contributed to a higher free cash flow compared to the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow, capital expenditure, and free cash flow all decreased sequentially, yet the free cash flow margin remained stable; year-over-year, all three metrics increased and the margin widened.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were lower, though the margin was unchanged. Versus the same quarter one year earlier, revenue, operating cash flow, capital expenditure, and free cash flow were higher, and the margin improved.
Monitor the contribution from receivable sales and DIRECTV distributions to operating cash flow, as noted in the filing.