Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable, yet free cash flow remained negative as capital expenditure stayed above operating cash flow. Cash conversion weakened compared with the prior quarter but improved relative to the same quarter a year earlier.
- Operating cash flow rose from the previous quarter but declined versus the year-ago quarter, while capital expenditure decreased from both comparison periods. The resulting free cash flow and free cash flow margin, though still negative, improved sequentially but worsened from the prior year.
- Revenue was higher sequentially and flat year over year. Operating cash flow increased from the prior quarter but was lower than the year-ago period. Free cash flow improved substantially versus the prior quarter but was weaker than the same quarter last year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$3.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$640.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$855.8M
Cash generated by operations before capital spending.
CapEx
$1.5B
Capital spending and related asset purchases.
FCF margin
-21.2%
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 | $3.0B | $1.3B | $1.6B | -$345.2M | -11.6% |
| 2024-12-31 | $2.9B | $811.7M | $2.1B | -$1.3B | -44.5% |
| 2025-03-31 | $2.9B | $328.1M | $1.9B | -$1.6B | -53.6% |
| 2025-06-30 | $3.0B | $855.8M | $1.5B | -$640.0M | -21.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -89.7% | 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.
Capital Expenditure Overhang
Capital expenditure decreased from both the prior quarter and the year-ago quarter, yet it continued to exceed operating cash flow. This persistent gap drove the negative free cash flow in the current period.
Until capital expenditure falls below or aligns more closely with operating cash flow, free cash flow is likely to remain negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose from the previous quarter but declined versus the year-ago quarter, while capital expenditure decreased from both comparison periods. The resulting free cash flow and free cash flow margin, though still negative, improved sequentially but worsened from the prior year.
Revenue was higher sequentially and flat year over year. Operating cash flow increased from the prior quarter but was lower than the year-ago period. Free cash flow improved substantially versus the prior quarter but was weaker than the same quarter last year.
Monitor the level of capital expenditure relative to operating cash flow, as the gap remains the primary factor behind negative free cash flow.