Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned deeply negative as operating cash flow reversed to an outflow, while capital expenditure remained elevated. The cash conversion weakened significantly compared with both the prior quarter and the same quarter last year.
- Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow shifted from positive to negative, and free cash flow margin worsened from a small negative to a larger negative, indicating a substantial deterioration in cash generation efficiency.
- Compared with the immediately preceding quarter, operating cash flow fell from positive to negative, and free cash flow became more negative. Versus the same quarter one year earlier, operating cash flow and free cash flow both declined sharply, and free cash flow margin turned from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$222.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$633.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$342.0M
Cash generated by operations before capital spending.
CapEx
$291.0M
Capital spending and related asset purchases.
FCF margin
-10.3%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $6.2B | $468.0M | $362.0M | $106.0M | 1.7% |
| 2024-09-30 | $6.0B | $1.3B | $381.0M | $919.0M | 15.3% |
| 2024-12-31 | $6.3B | $322.0M | $492.0M | -$170.0M | -2.7% |
| 2025-03-31 | $6.1B | -$342.0M | $291.0M | -$633.0M | -10.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -214.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.4B | 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 Reversal
Operating cash flow moved from a positive inflow in both comparison periods to a significant outflow this quarter. This reversal is the strongest observable driver of the free cash flow decline, as capital expenditure alone did not change enough to explain the swing.
The negative operating cash flow directly caused free cash flow to become deeply negative, despite capital expenditure being lower than the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow shifted from positive to negative, and free cash flow margin worsened from a small negative to a larger negative, indicating a substantial deterioration in cash generation efficiency.
Compared with the immediately preceding quarter, operating cash flow fell from positive to negative, and free cash flow became more negative. Versus the same quarter one year earlier, operating cash flow and free cash flow both declined sharply, and free cash flow margin turned from positive to negative.
Monitor whether operating cash flow can return to positive levels in the coming quarter, as the current outflow is the primary driver of the negative free cash flow.