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 sharply versus the prior quarter and also declined compared to the same quarter last year. Operating cash flow was lower sequentially and year-over-year, while capital expenditure increased relative to the year-ago period.
- Revenue was stable compared to the year-ago quarter, but operating cash flow was lower, resulting in a lower free cash flow margin. The conversion from revenue to free cash flow weakened sequentially and year-over-year.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow was substantially lower, and free cash flow margin declined. Versus the same quarter one year earlier, revenue was slightly higher, but operating cash flow and free cash flow were both lower, and margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$361.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$723.0M
Cash generated by operations before capital spending.
CapEx
$362.0M
Capital spending and related asset purchases.
FCF margin
3.5%
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 |
|---|---|---|---|---|---|
| 2024-06-29 | $10.5B | $2.0B | $301.0M | $1.7B | 15.7% |
| 2024-09-28 | $10.6B | $2.2B | $272.0M | $1.9B | 17.9% |
| 2024-12-31 | $11.4B | $3.3B | $480.0M | $2.8B | 24.7% |
| 2025-03-29 | $10.4B | $723.0M | $362.0M | $361.0M | 3.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 24.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$29.9B | 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 was lower both sequentially and year-over-year, despite revenue being relatively stable year-over-year. This was the strongest observable driver of the weakened free cash flow.
The lower operating cash flow directly reduced free cash flow and margin compared to both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the year-ago quarter, but operating cash flow was lower, resulting in a lower free cash flow margin. The conversion from revenue to free cash flow weakened sequentially and year-over-year.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow was substantially lower, and free cash flow margin declined. Versus the same quarter one year earlier, revenue was slightly higher, but operating cash flow and free cash flow were both lower, and margin weakened.
Monitor the trend in operating cash flow relative to revenue, as its decline was the primary factor behind the lower free cash flow.