Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to the same quarter last year, but operating cash flow remained negative. Free cash flow margin improved slightly from a year ago but was significantly lower than the prior quarter.
- Revenue was higher than the prior quarter, yet operating cash flow turned negative, resulting in a negative free cash flow margin after capital expenditure. The company's cash conversion was negative, meaning it did not generate sufficient cash from operations to cover its capital spending.
- Compared to the prior quarter, revenue was lower and operating cash flow shifted from positive to negative, leading to a much weaker free cash flow margin. Versus the same quarter last year, revenue was higher but operating cash flow was more negative, though free cash flow margin improved slightly.
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
-$610.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$546.0M
Cash generated by operations before capital spending.
CapEx
$64.0M
Capital spending and related asset purchases.
FCF margin
-6.9%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $8.3B | $287.0M | $67.0M | $220.0M | 2.7% |
| 2024-09-30 | $8.9B | $573.0M | $79.0M | $494.0M | 5.6% |
| 2024-12-31 | $10.2B | $1.3B | $93.0M | $1.2B | 12.2% |
| 2025-03-31 | $8.8B | -$546.0M | $64.0M | -$610.0M | -6.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -374.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Quarterly operating cash flow swing
Operating cash flow turned from positive in the prior quarter to negative in the current quarter, while capital expenditure was lower. This shift was the most significant change in cash conversion.
The company's free cash flow margin moved from positive to negative, reflecting a substantial weakening in cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, yet operating cash flow turned negative, resulting in a negative free cash flow margin after capital expenditure. The company's cash conversion was negative, meaning it did not generate sufficient cash from operations to cover its capital spending.
Compared to the prior quarter, revenue was lower and operating cash flow shifted from positive to negative, leading to a much weaker free cash flow margin. Versus the same quarter last year, revenue was higher but operating cash flow was more negative, though free cash flow margin improved slightly.
Monitor future capital expenditure commitments and co-investment funding requirements, as disclosed in the liquidity and capital resources discussion.