Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow improved compared to both the prior quarter and the same quarter last year. Free cash flow remained negative but was less negative than a year ago, while capital expenditure was stable year over year.
- Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter, indicating improved cash conversion. However, capital expenditure exceeded operating cash flow, resulting in negative free cash flow and a negative free cash flow margin.
- Compared to the prior quarter, revenue, operating cash flow, and capital expenditure were all higher, while free cash flow was more negative. Compared to the same quarter last year, revenue and operating cash flow were higher, capital expenditure was stable, and free cash flow was less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$511.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$1.8B
Capital spending and related asset purchases.
FCF margin
-15.2%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $3.0B | $1.1B | $1.7B | -$639.0M | -21.6% |
| 2025-03-31 | $2.9B | $545.0M | $1.3B | -$709.0M | -24.2% |
| 2025-06-30 | $2.9B | $976.0M | $1.3B | -$356.0M | -12.5% |
| 2025-09-30 | $3.4B | $1.3B | $1.8B | -$511.0M | -15.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -80.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 54.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Improvement
Operating cash flow was higher than both the prior quarter and the year-ago quarter, contributing to a less negative free cash flow compared to last year. This improvement occurred alongside higher revenue.
The stronger operating cash flow partially offset the capital expenditure outlay, reducing the free cash flow deficit relative to the prior year.
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 was higher than both the prior quarter and the year-ago quarter, indicating improved cash conversion. However, capital expenditure exceeded operating cash flow, resulting in negative free cash flow and a negative free cash flow margin.
Compared to the prior quarter, revenue, operating cash flow, and capital expenditure were all higher, while free cash flow was more negative. Compared to the same quarter last year, revenue and operating cash flow were higher, capital expenditure was stable, and free cash flow was less negative.
Monitor the relationship between operating cash flow and capital expenditure, as capital expenditure has consistently exceeded operating cash flow in the current and prior periods.