Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the year-ago quarter, driven by higher operating cash flow and lower capital expenditure. The free cash flow margin widened significantly, reflecting stronger cash conversion.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased substantially from both periods, while capital expenditure declined, resulting in a much higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, revenue decreased but operating cash flow rose, capital expenditure fell, and free cash flow turned from a modest level to a much higher level. Versus the year-ago quarter, revenue, operating cash flow, and free cash flow all increased, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.7B
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
18.7%
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 | $15.0B | $2.9B | $1.2B | $1.7B | 11.4% |
| 2024-09-30 | $14.8B | $1.5B | $1.4B | $88.0M | 0.6% |
| 2024-12-31 | $14.7B | $2.2B | $1.7B | $549.0M | 3.7% |
| 2025-03-31 | $13.2B | $3.7B | $1.2B | $2.5B | 18.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 640.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.3% | 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 Strength
Operating cash flow rose significantly from both the prior quarter and the year-ago quarter, even as revenue declined sequentially. This was the strongest observable driver of the free cash flow improvement.
The higher operating cash flow, combined with lower capital expenditure, drove free cash flow to a much higher level and expanded the free cash flow margin.
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 increased substantially from both periods, while capital expenditure declined, resulting in a much higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, revenue decreased but operating cash flow rose, capital expenditure fell, and free cash flow turned from a modest level to a much higher level. Versus the year-ago quarter, revenue, operating cash flow, and free cash flow all increased, while capital expenditure was lower.
Monitor whether the higher operating cash flow can be sustained given the lower revenue base.