Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative this quarter, driven by operating cash flow that was also negative. Revenue was higher than both the prior quarter and the same quarter last year, but capital expenditure increased compared to both periods.
- Operating cash flow was negative, resulting in negative free cash flow and a negative free cash flow margin. Capital expenditure exceeded operating cash flow, further reducing free cash flow.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both weakened, turning from positive to negative. Compared to the same quarter one year earlier, operating cash flow was less negative, and free cash flow was also less negative, while revenue was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$853.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$371.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$133.0M
Cash generated by operations before capital spending.
CapEx
$238.0M
Capital spending and related asset purchases.
FCF margin
-6.5%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $3.2B | $428.0M | $98.0M | $330.0M | 10.2% |
| 2025-03-31 | $3.3B | $117.0M | $117.0M | $0 | 0.0% |
| 2025-06-30 | $5.1B | $1.1B | $220.0M | $894.0M | 17.6% |
| 2025-09-30 | $5.7B | -$133.0M | $238.0M | -$371.0M | -6.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -141.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | 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
Operating cash flow was negative this quarter, a significant change from the positive level in the prior quarter. This was the strongest observable driver of the negative free cash flow.
The negative operating cash flow directly caused free cash flow to be negative, despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, resulting in negative free cash flow and a negative free cash flow margin. Capital expenditure exceeded operating cash flow, further reducing free cash flow.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both weakened, turning from positive to negative. Compared to the same quarter one year earlier, operating cash flow was less negative, and free cash flow was also less negative, while revenue was higher.
Monitor whether operating cash flow can turn positive in future quarters, as it is the primary driver of free cash flow.