Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the first quarter of fiscal 2025, free cash flow turned positive compared to a negative figure one year earlier, supported by a higher operating cash flow despite lower revenue. The free cash flow margin improved significantly from the prior year but weakened from the immediately preceding quarter.
- Revenue decreased from both the prior quarter and the year-ago quarter, while operating cash flow was higher than the year-ago level but lower than the prior quarter. Capital expenditure was lower than both comparison periods, contributing to a positive free cash flow and a free cash flow margin that improved from the year-ago quarter but weakened from the prior quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue was lower, operating cash flow was higher, capital expenditure was lower, free cash flow turned positive from negative, and free cash flow margin improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$664.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$1.5B
Capital spending and related asset purchases.
FCF margin
3.4%
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 | $25.5B | $3.6B | $2.3B | $1.3B | 5.3% |
| 2024-09-30 | $25.2B | $6.3B | $3.5B | $2.7B | 10.9% |
| 2024-12-31 | $25.7B | $4.8B | $2.8B | $2.0B | 7.9% |
| 2025-03-31 | $19.3B | $2.2B | $1.5B | $664.0M | 3.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 162.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | $11.3B | 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 Recovery
Operating cash flow increased substantially from the year-ago quarter, enabling a positive free cash flow despite lower revenue. This improvement was the strongest observable driver of the quarter's cash conversion.
The higher operating cash flow relative to the year-ago quarter was the primary factor behind the shift from negative to positive free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased from both the prior quarter and the year-ago quarter, while operating cash flow was higher than the year-ago level but lower than the prior quarter. Capital expenditure was lower than both comparison periods, contributing to a positive free cash flow and a free cash flow margin that improved from the year-ago quarter but weakened from the prior quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue was lower, operating cash flow was higher, capital expenditure was lower, free cash flow turned positive from negative, and free cash flow margin improved from negative to positive.
Monitor whether operating cash flow can sustain its improvement relative to the year-ago level given the lower revenue base.