Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and free cash flow margin were stable compared to the same quarter one year earlier, and both weakened versus the immediately preceding quarter. Operating cash flow increased slightly from the year-ago quarter but decreased from the prior quarter, while capital expenditure was higher year over year and lower sequentially.
- Revenue was essentially unchanged from a year earlier and slightly lower than the prior quarter. Operating cash flow as a proportion of revenue declined sequentially, and the combination of operating cash flow and capital expenditure produced a free cash flow margin that was stable year over year but lower than the preceding quarter.
- Compared to the prior quarter, operating cash flow and free cash flow both decreased, and the free cash flow margin fell. Compared to the same quarter one year earlier, revenue and free cash flow were similar, operating cash flow improved slightly, and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$906.0M
Capital spending and related asset purchases.
FCF margin
21.6%
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 | $6.0B | $1.9B | $902.0M | $1.0B | 16.8% |
| 2024-09-30 | $6.1B | $2.7B | $831.0M | $1.8B | 29.9% |
| 2024-12-31 | $6.1B | $2.7B | $922.0M | $1.7B | 28.4% |
| 2025-03-31 | $6.0B | $2.2B | $906.0M | $1.3B | 21.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 80.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 15.0% | 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.
Sequential Free Cash Flow Decline
The free cash flow margin weakened from the prior quarter, driven by a lower operating cash flow even as capital expenditure declined modestly. The year-over-year comparison shows stability, but the sequential weakening is the most notable shift.
The free cash flow margin dropped from the preceding quarter, indicating a lower rate of revenue conversion into free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was essentially unchanged from a year earlier and slightly lower than the prior quarter. Operating cash flow as a proportion of revenue declined sequentially, and the combination of operating cash flow and capital expenditure produced a free cash flow margin that was stable year over year but lower than the preceding quarter.
Compared to the prior quarter, operating cash flow and free cash flow both decreased, and the free cash flow margin fell. Compared to the same quarter one year earlier, revenue and free cash flow were similar, operating cash flow improved slightly, and capital expenditure was higher.
Monitor the trend in operating cash flow relative to capital expenditure, as a decline in the former combined with an increase in the latter compressed free cash flow sequentially.