Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained deeply negative in the current quarter, driven by capital expenditure significantly exceeding operating cash flow. Revenue rose sequentially and year over year, but operating cash flow declined compared to both prior periods.
- Operating cash flow as a proportion of revenue weakened relative to the preceding quarter and the same quarter last year, while capital expenditure remained elevated, resulting in a lower cash conversion rate.
- Compared to the prior quarter, operating cash flow decreased and the free cash flow deficit widened, despite slightly lower capital spending. Versus the year-ago quarter, operating cash flow also declined and capital expenditure increased, producing a more negative free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$633.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$431.0M
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
-30.2%
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 | $1.7B | $557.0M | $1.0B | -$445.0M | -26.3% |
| 2024-09-30 | $2.2B | $897.0M | $1.1B | -$240.0M | -11.0% |
| 2024-12-31 | $1.9B | $817.0M | $1.3B | -$473.0M | -24.4% |
| 2025-03-31 | $2.1B | $431.0M | $1.1B | -$633.0M | -30.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -218.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 50.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$18.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital expenditure intensity
Capital expenditure remained the largest cash outflow, consistently exceeding operating cash flow in the current quarter. This pattern is the strongest observable factor behind the sustained negative free cash flow.
Unless operating cash flow improves or capital spending moderates, the free cash flow deficit is likely to persist.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue weakened relative to the preceding quarter and the same quarter last year, while capital expenditure remained elevated, resulting in a lower cash conversion rate.
Compared to the prior quarter, operating cash flow decreased and the free cash flow deficit widened, despite slightly lower capital spending. Versus the year-ago quarter, operating cash flow also declined and capital expenditure increased, producing a more negative free cash flow.
Monitor the trajectory of operating cash flow, as its recent decline is the primary contributor to the widening free cash flow gap.