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 decreased from the prior quarter, while capital expenditure rose slightly, resulting in a shift from positive to negative free cash flow. Compared to the same quarter last year, free cash flow improved significantly as operating cash flow increased and capital expenditure declined.
- Operating cash flow as a proportion of revenue weakened from the prior quarter, and with capital expenditure exceeding operating cash flow, free cash flow turned negative. The free cash flow margin moved from positive to negative, reflecting a lower cash conversion efficiency.
- Compared to the prior quarter, revenue and operating cash flow were lower, while capital expenditure was slightly higher, causing free cash flow to decline from positive to negative. Versus the same quarter last year, revenue was slightly lower but operating cash flow was higher, capital expenditure was lower, and free cash flow improved from a larger negative to a smaller negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$775.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$54.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$956.0M
Cash generated by operations before capital spending.
CapEx
$1.0B
Capital spending and related asset purchases.
FCF margin
-3.0%
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 | $2.1B | $431.0M | $1.1B | -$633.0M | -30.2% |
| 2025-06-30 | $2.2B | $862.0M | $1.1B | -$204.0M | -9.2% |
| 2025-09-30 | $2.7B | $1.1B | $988.0M | $116.0M | 4.3% |
| 2025-12-31 | $1.8B | $956.0M | $1.0B | -$54.0M | -3.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -21.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 56.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$19.4B | 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 vs. Operating Cash Flow
Capital expenditure remained elevated relative to operating cash flow, exceeding it in the current quarter and reversing the prior quarter's surplus. This was the strongest observable factor behind the negative free cash flow.
The gap between capital expenditure and operating cash flow drove free cash flow from positive to negative.
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 from the prior quarter, and with capital expenditure exceeding operating cash flow, free cash flow turned negative. The free cash flow margin moved from positive to negative, reflecting a lower cash conversion efficiency.
Compared to the prior quarter, revenue and operating cash flow were lower, while capital expenditure was slightly higher, causing free cash flow to decline from positive to negative. Versus the same quarter last year, revenue was slightly lower but operating cash flow was higher, capital expenditure was lower, and free cash flow improved from a larger negative to a smaller negative.
Monitor whether capital expenditure continues to exceed operating cash flow, as this directly pressures free cash flow.