Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than a year ago. Cash generation strengthened significantly, with free cash flow margin improving from both comparison periods.
- Revenue converted into operating cash flow at a higher rate, resulting in improved free cash flow margin.
- Compared to the preceding quarter, revenue was lower but operating cash flow and free cash flow were higher, leading to a stronger margin. Versus the same quarter one year earlier, all metrics improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.3B
Cash generated by operations before capital spending.
CapEx
$74.0M
Capital spending and related asset purchases.
FCF margin
19.5%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $10.7B | $1.8B | $99.0M | $1.7B | 16.1% |
| 2024-09-30 | $11.2B | $2.2B | $42.0M | $2.1B | 18.9% |
| 2024-12-31 | $12.0B | $1.8B | $44.0M | $1.7B | 14.3% |
| 2025-03-31 | $11.5B | $2.3B | $74.0M | $2.3B | 19.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 126.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Enhanced cash generation
Operating cash flow grew significantly from both prior periods, supported by working capital improvements including higher accrued insurance reserves and other liabilities, as noted in the filing.
This drove free cash flow margin to a higher level, reflecting stronger cash conversion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue converted into operating cash flow at a higher rate, resulting in improved free cash flow margin.
Compared to the preceding quarter, revenue was lower but operating cash flow and free cash flow were higher, leading to a stronger margin. Versus the same quarter one year earlier, all metrics improved.
Monitor changes in working capital, particularly accrued insurance reserves and other liabilities.