Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative as operating cash flow declined sharply relative to revenue, while capital expenditures remained elevated. Both sequential and year-over-year comparisons show weakened cash generation.
- Revenue was slightly lower compared to both prior periods, but the conversion to operating cash flow weakened substantially, resulting in a negative free cash flow margin. Capital expenditures were higher than a year ago.
- Compared to the previous quarter, free cash flow fell from positive to negative, driven by a steep drop in operating cash flow. Compared to the same quarter last year, operating cash flow and free cash flow both decreased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$515.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$275.0M
Cash generated by operations before capital spending.
CapEx
$790.0M
Capital spending and related asset purchases.
FCF margin
-2.2%
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 |
|---|---|---|---|---|---|
| 2024-08-03 | $25.5B | $2.2B | $639.0M | $1.6B | 6.3% |
| 2024-11-02 | $25.7B | $739.0M | $655.0M | $84.0M | 0.3% |
| 2025-02-01 | $30.9B | $3.3B | $923.0M | $2.4B | 7.7% |
| 2025-05-03 | $23.8B | $275.0M | $790.0M | -$515.0M | -2.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -49.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | 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 Decline
Operating cash flow decreased significantly from both the prior quarter and the year-ago quarter, outweighing lower capital expenditures and leading to negative free cash flow.
The negative free cash flow margin reflects a weakened ability to generate cash from operations relative to sales.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower compared to both prior periods, but the conversion to operating cash flow weakened substantially, resulting in a negative free cash flow margin. Capital expenditures were higher than a year ago.
Compared to the previous quarter, free cash flow fell from positive to negative, driven by a steep drop in operating cash flow. Compared to the same quarter last year, operating cash flow and free cash flow both decreased.
Monitor operating cash flow trends, particularly working capital changes, as its sharp decline was the primary factor in negative free cash flow.