Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved in the current quarter compared to both the prior quarter and the same quarter last year. Free cash flow remained negative but showed significant improvement against both comparable periods.
- Operating cash flow turned positive, rising from deeply negative levels in both the prior quarter and the year-ago quarter, while capital expenditure decreased compared to the prior quarter but increased versus the year-ago quarter. The combination resulted in a less negative free cash flow margin versus both periods.
- Revenue was higher than both the immediately preceding quarter and the same quarter one year earlier. Free cash flow, while still negative, improved considerably versus both periods, with the prior quarter's free cash flow margin showing notable weakening.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$8.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$200.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$227.0M
Cash generated by operations before capital spending.
CapEx
$427.0M
Capital spending and related asset purchases.
FCF margin
-0.9%
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 | $17.8B | -$1.3B | $611.0M | -$2.0B | -11.0% |
| 2024-12-31 | $15.2B | -$3.5B | $648.0M | -$4.1B | -26.9% |
| 2025-03-31 | $19.5B | -$1.6B | $674.0M | -$2.3B | -11.7% |
| 2025-06-30 | $22.7B | $227.0M | $427.0M | -$200.0M | -0.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 32.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$46.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Reversal
Operating cash flow shifted from deeply negative in both the prior quarter and the year-ago quarter to positive in the current quarter. This improvement was the predominant observable factor behind the narrower free cash flow deficit.
Free cash flow, though still negative, improved substantially as a direct consequence of the positive operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow turned positive, rising from deeply negative levels in both the prior quarter and the year-ago quarter, while capital expenditure decreased compared to the prior quarter but increased versus the year-ago quarter. The combination resulted in a less negative free cash flow margin versus both periods.
Revenue was higher than both the immediately preceding quarter and the same quarter one year earlier. Free cash flow, while still negative, improved considerably versus both periods, with the prior quarter's free cash flow margin showing notable weakening.
Capital expenditure increased from the year-ago level and should be monitored for its impact on free cash flow.