Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both declined compared to the prior quarter and the same quarter last year. The free cash flow margin weakened sequentially and year-over-year.
- Operating cash flow was lower than both the preceding quarter and the year-ago period, while capital expenditure also decreased. The resulting free cash flow was lower, and the free cash flow margin contracted.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, the same metrics were lower, with the free cash flow margin showing a notable decline.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.3B
Cash generated by operations before capital spending.
CapEx
$876.0M
Capital spending and related asset purchases.
FCF margin
6.7%
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 | $21.8B | $2.0B | $933.0M | $1.1B | 4.9% |
| 2024-09-30 | $22.2B | $1.5B | $843.0M | $655.0M | 2.9% |
| 2024-12-31 | $25.3B | $3.3B | $1.1B | $2.2B | 8.8% |
| 2025-03-31 | $21.5B | $2.3B | $876.0M | $1.4B | 6.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 121.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | 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 Decline
Operating cash flow decreased compared to both the prior quarter and the year-ago period, while capital expenditure also fell. The free cash flow margin contracted, indicating a weaker conversion of revenue into free cash flow.
The lower operating cash flow was the primary factor behind the reduced free cash flow and margin compression.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than both the preceding quarter and the year-ago period, while capital expenditure also decreased. The resulting free cash flow was lower, and the free cash flow margin contracted.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, the same metrics were lower, with the free cash flow margin showing a notable decline.
Monitor the trajectory of operating cash flow relative to revenue, as it declined more sharply than revenue on a sequential basis.