Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow turned positive compared to the same quarter one year earlier but declined sharply from the immediately preceding quarter. The cash conversion margin improved from negative to positive year-over-year, yet weakened sequentially.
- Revenue was lower than the prior quarter and higher than the year-ago quarter. Operating cash flow, capital expenditure, and free cash flow all followed similar patterns: lower sequentially but higher year-over-year, resulting in a free cash flow margin that improved from negative a year ago to positive, but decreased from the previous quarter.
- Compared with the prior quarter, free cash flow and its margin weakened significantly. Compared with the same quarter a year ago, free cash flow improved from negative to positive and the margin turned favorable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$13.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$425.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$5.4B
Cash generated by operations before capital spending.
CapEx
$5.0B
Capital spending and related asset purchases.
FCF margin
0.3%
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 |
|---|---|---|---|---|---|
| 2024-07-31 | $167.8B | $12.1B | $5.8B | $6.3B | 3.7% |
| 2024-10-31 | $168.0B | $6.6B | $6.2B | $372.0M | 0.2% |
| 2025-01-31 | $178.8B | $13.5B | $7.1B | $6.4B | 3.6% |
| 2025-04-30 | $164.0B | $5.4B | $5.0B | $425.0M | 0.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 9.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$31.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year free cash flow turnaround
Free cash flow shifted from negative in the year-ago quarter to positive in the current quarter, supported by higher operating cash flow and a modestly higher capital expenditure. This improvement marks a change in cash generation relative to the same period last year.
The positive free cash flow provides a stronger cash position compared to the prior year, despite the sequential weakness.
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 and higher than the year-ago quarter. Operating cash flow, capital expenditure, and free cash flow all followed similar patterns: lower sequentially but higher year-over-year, resulting in a free cash flow margin that improved from negative a year ago to positive, but decreased from the previous quarter.
Compared with the prior quarter, free cash flow and its margin weakened significantly. Compared with the same quarter a year ago, free cash flow improved from negative to positive and the margin turned favorable.
Monitor the sequential decline in free cash flow, as the sharp drop from the prior quarter may indicate a trend worth tracking.