Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased sharply compared to the prior quarter and the year-ago quarter, while operating cash flow improved to a smaller deficit. However, capital expenditure rose substantially, resulting in a larger negative free cash flow, though the free cash flow margin improved.
- The company generated negative operating cash flow, but the deficit was narrower than in the preceding quarter and the year-ago period. Capital expenditure was significantly higher than both prior periods, causing free cash flow to remain deeply negative, although the free cash flow margin was less negative than before.
- Compared to the prior quarter, revenue increased, operating cash flow improved, capital expenditure rose, and the free cash flow deficit widened, but the free cash flow margin improved. Relative to the year-ago quarter, similar trends were observed with revenue higher, operating cash flow less negative, capital expenditure higher, free cash flow more negative, and margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$567.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$15.8M
Cash generated by operations before capital spending.
CapEx
$552.1M
Capital spending and related asset purchases.
FCF margin
-448.6%
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 |
|---|---|---|---|---|---|
| 2025-02-28 | $52.9M | $5.9M | $257.5M | -$251.6M | -475.4% |
| 2025-05-31 | -$33.3M | $6.9M | $198.3M | -$191.4M | 574.8% |
| 2025-08-31 | $64.2M | -$82.0M | $249.4M | -$331.4M | -516.1% |
| 2025-11-30 | $126.6M | -$15.8M | $552.1M | -$567.9M | -448.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 3930.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 436.1% | 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.
Capital Expenditure Growth
Capital expenditure was the largest cash outflow, far exceeding operating cash flow and driving the negative free cash flow. It was higher than both the prior quarter and the year-ago quarter.
The elevated capital spending is the primary factor behind the company's negative free cash flow position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company generated negative operating cash flow, but the deficit was narrower than in the preceding quarter and the year-ago period. Capital expenditure was significantly higher than both prior periods, causing free cash flow to remain deeply negative, although the free cash flow margin was less negative than before.
Compared to the prior quarter, revenue increased, operating cash flow improved, capital expenditure rose, and the free cash flow deficit widened, but the free cash flow margin improved. Relative to the year-ago quarter, similar trends were observed with revenue higher, operating cash flow less negative, capital expenditure higher, free cash flow more negative, and margin improved.
Monitor the trajectory of capital expenditure given its substantial increase and its effect on cash reserves.