Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow increased compared to both the prior quarter and the same quarter last year. Capital expenditure was lower, contributing to a notable improvement in free cash flow and free cash flow margin, though both remained negative.
- Operating cash flow as a percentage of revenue improved, while capital expenditure as a percentage of revenue declined. The combination led to a less negative free cash flow margin.
- Sequentially, revenue and operating cash flow rose, while capital expenditure fell, resulting in a less negative free cash flow. Year-over-year, the same trends were observed with even larger improvements in free cash flow.
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
-$350.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$900.7M
Cash generated by operations before capital spending.
CapEx
$1.3B
Capital spending and related asset purchases.
FCF margin
-11.3%
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 | $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% |
| 2025-12-31 | $3.1B | $900.7M | $1.3B | -$350.5M | -11.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -51.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 40.3% | 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 Reduction
Capital expenditure was lower than the prior quarter and the year-ago period. This reduction, combined with higher operating cash flow, drove the improvement in free cash flow.
The lower capital spending was the primary factor behind the reduced free cash outflow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue improved, while capital expenditure as a percentage of revenue declined. The combination led to a less negative free cash flow margin.
Sequentially, revenue and operating cash flow rose, while capital expenditure fell, resulting in a less negative free cash flow. Year-over-year, the same trends were observed with even larger improvements in free cash flow.
Monitor the trajectory of capital expenditure relative to operating cash flow, as free cash flow remains negative despite improvement.