Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative in the fourth quarter, driven by capital expenditure that exceeded operating cash flow. Revenue and operating cash flow were higher than the same quarter last year, but the free cash flow deficit widened compared to the prior quarter.
- Operating cash flow was lower than capital expenditure, resulting in negative free cash flow and a negative free cash flow margin. The conversion from revenue to free cash flow was constrained by the large investment in capital projects.
- Compared to the prior quarter, revenue and operating cash flow were lower, while capital expenditure was higher, leading to a larger free cash flow deficit. Versus the same quarter last year, revenue, operating cash flow, and capital expenditure were all higher, but the free cash flow deficit improved slightly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$385.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$663.0M
Cash generated by operations before capital spending.
CapEx
$1.0B
Capital spending and related asset purchases.
FCF margin
-30.4%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $1.1B | $331.0M | $548.0M | -$217.0M | -19.1% |
| 2025-06-30 | $1.3B | $301.0M | $733.0M | -$432.0M | -34.0% |
| 2025-09-30 | $1.5B | $764.0M | $797.0M | -$33.0M | -2.3% |
| 2025-12-31 | $1.3B | $663.0M | $1.0B | -$385.0M | -30.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -161.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 82.8% | 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 Intensity
Capital expenditure was the largest cash outflow and exceeded operating cash flow, causing negative free cash flow. The company invests heavily in regulated capital projects where recovery occurs over an extended period, contributing to the cash deficit.
Sustained high capital expenditure relative to operating cash flow will continue to pressure free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than capital expenditure, resulting in negative free cash flow and a negative free cash flow margin. The conversion from revenue to free cash flow was constrained by the large investment in capital projects.
Compared to the prior quarter, revenue and operating cash flow were lower, while capital expenditure was higher, leading to a larger free cash flow deficit. Versus the same quarter last year, revenue, operating cash flow, and capital expenditure were all higher, but the free cash flow deficit improved slightly.
Monitor the level of capital expenditure relative to operating cash flow, as the gap between them drives the free cash flow outcome.