Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved versus both the prior quarter and the same quarter last year, while operating cash flow was lower than both periods. Higher capital expenditure drove a more negative free cash flow and a weakened free cash flow margin.
- Operating cash flow as a proportion of revenue was lower than the prior quarter and the year-ago quarter, reflecting weaker conversion of revenue into cash. Free cash flow remained negative due to capital expenditure exceeding operating cash flow.
- Compared to the immediately preceding quarter, revenue increased but operating cash flow decreased, while capital expenditure rose, resulting in a larger negative free cash flow and a lower margin. Versus the same quarter one year earlier, revenue was higher but operating cash flow was lower; capital expenditure was higher, leading to a more negative free cash flow and a weaker margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$908.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$432.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$301.0M
Cash generated by operations before capital spending.
CapEx
$733.0M
Capital spending and related asset purchases.
FCF margin
-34.0%
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 | $1.3B | $679.0M | $683.0M | -$4.0M | -0.3% |
| 2024-12-31 | $1.2B | $639.0M | $894.0M | -$255.0M | -21.6% |
| 2025-03-31 | $1.1B | $331.0M | $548.0M | -$217.0M | -19.1% |
| 2025-06-30 | $1.3B | $301.0M | $733.0M | -$432.0M | -34.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -149.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 57.6% | 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 Increase
Capital expenditure was higher than both the preceding quarter and the same quarter a year earlier. This was the strongest observable driver of the enlarged negative free cash flow.
Higher capital expenditure directly reduced free cash flow and widened the negative free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the prior quarter and the year-ago quarter, reflecting weaker conversion of revenue into cash. Free cash flow remained negative due to capital expenditure exceeding operating cash flow.
Compared to the immediately preceding quarter, revenue increased but operating cash flow decreased, while capital expenditure rose, resulting in a larger negative free cash flow and a lower margin. Versus the same quarter one year earlier, revenue was higher but operating cash flow was lower; capital expenditure was higher, leading to a more negative free cash flow and a weaker margin.
Monitor the trend in capital expenditure relative to operating cash flow, as the gap widened this quarter.