Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow and free cash flow improved compared to both the preceding quarter and the same quarter last year, with free cash flow margin strengthening.
- Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter. After deducting capital expenditure, free cash flow margin also improved sequentially and year-over-year, indicating a stronger conversion of revenue into free cash flow.
- Compared to the immediately preceding quarter, revenue was lower while operating cash flow, free cash flow, and free cash flow margin were higher. Versus the same quarter one year earlier, all metrics were higher except capital expenditure, which was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$15.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$6.8B
Cash generated by operations before capital spending.
CapEx
$2.5B
Capital spending and related asset purchases.
FCF margin
21.0%
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 | $19.8B | $5.5B | $2.0B | $3.5B | 17.6% |
| 2024-09-30 | $20.2B | $6.1B | $2.0B | $4.2B | 20.7% |
| 2024-12-31 | $21.9B | $5.5B | $2.2B | $3.3B | 15.3% |
| 2025-03-31 | $20.9B | $6.8B | $2.5B | $4.4B | 21.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 148.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.7% | 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 Strength
Operating cash flow was higher than both the prior quarter and the year-ago quarter, and the increase was larger than the change in revenue. The filing notes that net cash provided by operating activities increased primarily due to a decrease in net cash outflows from changes in working capital.
The higher operating cash flow was the primary factor behind the improved free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter. After deducting capital expenditure, free cash flow margin also improved sequentially and year-over-year, indicating a stronger conversion of revenue into free cash flow.
Compared to the immediately preceding quarter, revenue was lower while operating cash flow, free cash flow, and free cash flow margin were higher. Versus the same quarter one year earlier, all metrics were higher except capital expenditure, which was slightly lower.
Monitor the trend in capital expenditure relative to operating cash flow, as it directly influences the magnitude of free cash flow.