Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's free cash flow was negative, as operating cash flow was negative while capital expenditure remained substantial. Compared to the prior quarter, cash conversion weakened sharply, though it was a similar pattern to the same quarter last year.
- Revenue was lower than the preceding quarter, and operating cash flow turned from positive to negative, resulting in a free cash flow margin that was negative and lower than both the prior quarter and the year-ago quarter.
- Free cash flow and margin were lower than the immediately preceding quarter, but were similar to the same quarter one year earlier, which also showed a negative margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$669.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$313.0M
Cash generated by operations before capital spending.
CapEx
$356.0M
Capital spending and related asset purchases.
FCF margin
-11.1%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $6.1B | -$342.0M | $291.0M | -$633.0M | -10.3% |
| 2025-06-30 | $6.3B | $4.3B | $305.0M | $4.0B | 63.0% |
| 2025-09-30 | $6.4B | $1.8B | $296.0M | $1.5B | 23.6% |
| 2025-12-31 | $6.1B | -$313.0M | $356.0M | -$669.0M | -11.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -146.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.6B | 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
The strongest observable driver is the decline in operating cash flow from a positive amount in the prior quarter to a negative amount in the current quarter. This shift was the primary factor behind the negative free cash flow.
The negative operating cash flow drove a significant weakening in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the preceding quarter, and operating cash flow turned from positive to negative, resulting in a free cash flow margin that was negative and lower than both the prior quarter and the year-ago quarter.
Free cash flow and margin were lower than the immediately preceding quarter, but were similar to the same quarter one year earlier, which also showed a negative margin.
Monitor whether operating cash flow returns to positive levels in the coming quarters.