Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow was negative but improved significantly compared to both the preceding quarter and the year-ago quarter.
- Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure was lower than both comparative periods. The combination resulted in a free cash flow margin that was less negative than in either comparison period.
- Compared to the prior quarter, revenue was lower but operating cash flow was higher, capital expenditure was lower, and free cash flow was less negative. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow was less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$47.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$1.5B
Capital spending and related asset purchases.
FCF margin
-1.5%
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 | $2.9B | $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% |
| 2025-12-31 | $3.1B | $1.5B | $1.5B | -$47.0M | -1.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -14.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 49.5% | 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, while capital expenditure was lower than both periods. This was the strongest observable driver of the less negative free cash flow.
The combination of higher operating cash flow and lower capital expenditure led to a materially less negative free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure was lower than both comparative periods. The combination resulted in a free cash flow margin that was less negative than in either comparison period.
Compared to the prior quarter, revenue was lower but operating cash flow was higher, capital expenditure was lower, and free cash flow was less negative. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow was less negative.
Monitor whether capital expenditure remains at a level that allows operating cash flow to sustain or improve free cash flow.