Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative, driven by operating cash flow that was positive but insufficient to cover capital expenditure. Revenue increased compared to both the prior quarter and the same quarter last year, while the free cash flow margin improved from the prior quarter but remained negative.
- Operating cash flow turned positive this quarter, a significant improvement from negative levels in both the prior quarter and the year-ago quarter. However, capital expenditure remained elevated, resulting in negative free cash flow and a negative free cash flow margin.
- Compared to the prior quarter, revenue was higher, operating cash flow improved from negative to positive, and free cash flow was less negative. Compared to the same quarter last year, revenue was higher, operating cash flow improved from negative to positive, and free cash flow was less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$4.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$699.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$107.0M
Cash generated by operations before capital spending.
CapEx
$806.0M
Capital spending and related asset purchases.
FCF margin
-11.4%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $4.4B | -$613.0M | $546.0M | -$1.2B | -26.3% |
| 2024-09-30 | $4.8B | -$112.0M | $552.0M | -$664.0M | -13.9% |
| 2024-12-31 | $4.5B | -$1.0B | $729.0M | -$1.7B | -38.6% |
| 2025-03-31 | $6.1B | $107.0M | $806.0M | -$699.0M | -11.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -592.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 13.2% | 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.
Operating Cash Flow Turned Positive
Operating cash flow shifted from negative in both the prior quarter and the year-ago quarter to positive this quarter, marking a notable improvement in cash generation from operations.
This improvement reduced the free cash flow deficit compared to prior periods, even though capital expenditure remained high.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow turned positive this quarter, a significant improvement from negative levels in both the prior quarter and the year-ago quarter. However, capital expenditure remained elevated, resulting in negative free cash flow and a negative free cash flow margin.
Compared to the prior quarter, revenue was higher, operating cash flow improved from negative to positive, and free cash flow was less negative. Compared to the same quarter last year, revenue was higher, operating cash flow improved from negative to positive, and free cash flow was less negative.
Monitor the level of capital expenditure relative to operating cash flow, as it continues to exceed operating cash flow and drives negative free cash flow.