Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both fell compared to the previous quarter and the same quarter last year. Free cash flow margin weakened from both prior periods.
- Operating cash flow relative to revenue was lower in the current quarter than in the preceding quarter but slightly higher than the year-ago quarter. Capital expenditure was lower than the prior quarter but higher than a year earlier, resulting in free cash flow that was below both comparison periods.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower. Versus the same quarter one year earlier, revenue and free cash flow were also lower, though operating cash flow was slightly improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$302.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$553.0M
Cash generated by operations before capital spending.
CapEx
$251.0M
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 | $9.7B | $1.2B | $252.0M | $976.0M | 10.0% |
| 2024-09-30 | $9.6B | $847.0M | $215.0M | $632.0M | 6.6% |
| 2024-12-31 | $10.0B | $2.7B | $286.0M | $2.4B | 24.2% |
| 2025-03-31 | $9.0B | $553.0M | $251.0M | $302.0M | 3.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -66.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$33.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Decline
Revenue was lower than both the preceding quarter and the same quarter one year earlier. The decline was the most concrete observable change across the financial metrics.
Lower revenue contributed to reduced operating cash flow and free cash flow compared to both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow relative to revenue was lower in the current quarter than in the preceding quarter but slightly higher than the year-ago quarter. Capital expenditure was lower than the prior quarter but higher than a year earlier, resulting in free cash flow that was below both comparison periods.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower. Versus the same quarter one year earlier, revenue and free cash flow were also lower, though operating cash flow was slightly improved.
Monitor the trajectory of revenue given its decline relative to both the prior quarter and the year-ago quarter.