Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved compared to both the prior quarter and the same quarter last year, but capital expenditure rose significantly, resulting in a negative free cash flow margin. The free cash flow deficit widened from the year-ago quarter, though it was a reversal from the prior quarter's positive free cash flow.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow as a proportion of revenue was higher than both comparison periods, yet capital expenditure exceeded operating cash flow, producing a negative free cash flow margin that was slightly worse than the year-ago quarter.
- Compared to the prior quarter, revenue and operating cash flow were lower, while capital expenditure was higher, shifting free cash flow from positive to negative. Versus the same quarter last year, revenue, operating cash flow, and capital expenditure were all higher, with free cash flow remaining negative and the margin slightly weaker.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$370.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$496.4M
Cash generated by operations before capital spending.
CapEx
$866.9M
Capital spending and related asset purchases.
FCF margin
-44.2%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $657.9M | $330.7M | $808.0M | -$477.3M | -72.5% |
| 2024-12-31 | $1.2B | $282.0M | $891.2M | -$609.2M | -51.8% |
| 2025-03-31 | $2.0B | $922.9M | $839.7M | $83.3M | 4.3% |
| 2025-06-30 | $838.8M | $496.4M | $866.9M | -$370.6M | -44.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -198.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 103.4% | 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 increased from both the prior quarter and the year-ago quarter, exceeding operating cash flow and causing free cash flow to turn negative. This was the strongest observable factor in the cash conversion outcome.
The elevated capital expenditure was the primary reason free cash flow margin weakened compared to the year-ago quarter and reversed from the prior quarter's positive position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow as a proportion of revenue was higher than both comparison periods, yet capital expenditure exceeded operating cash flow, producing a negative free cash flow margin that was slightly worse than the year-ago quarter.
Compared to the prior quarter, revenue and operating cash flow were lower, while capital expenditure was higher, shifting free cash flow from positive to negative. Versus the same quarter last year, revenue, operating cash flow, and capital expenditure were all higher, with free cash flow remaining negative and the margin slightly weaker.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the gap widened this quarter and drove the negative free cash flow.