Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's cash conversion weakened sharply from the prior quarter, as operating cash flow fell while capital expenditure rose, despite stable revenue. Compared to the same quarter one year earlier, free cash flow improved significantly because operating cash flow turned positive.
- Revenue was stable compared to the prior quarter, but operating cash flow was lower and capital expenditure was higher, resulting in negative free cash flow and a negative margin. Relative to the year-ago quarter, operating cash flow improved, capital expenditure increased, yet free cash flow was less negative.
- Compared to the prior quarter, operating cash flow and free cash flow both weakened, while capital expenditure increased. Versus the year-ago quarter, operating cash flow and free cash flow improved, and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$181.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$805.0M
Cash generated by operations before capital spending.
CapEx
$986.0M
Capital spending and related asset purchases.
FCF margin
-3.2%
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 | $6.1B | $107.0M | $806.0M | -$699.0M | -11.4% |
| 2025-06-30 | $5.2B | $1.5B | $767.0M | $710.0M | 13.8% |
| 2025-09-30 | $5.7B | $1.8B | $390.0M | $1.5B | 25.6% |
| 2025-12-31 | $5.7B | $805.0M | $986.0M | -$181.0M | -3.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -41.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.8B | 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 Decline
Operating cash flow decreased significantly from the prior quarter while revenue was unchanged, contributing to the negative free cash flow.
The lower operating cash flow, together with higher capital expenditure, was the primary observable factor weakening cash conversion this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter, but operating cash flow was lower and capital expenditure was higher, resulting in negative free cash flow and a negative margin. Relative to the year-ago quarter, operating cash flow improved, capital expenditure increased, yet free cash flow was less negative.
Compared to the prior quarter, operating cash flow and free cash flow both weakened, while capital expenditure increased. Versus the year-ago quarter, operating cash flow and free cash flow improved, and capital expenditure was higher.
Monitor the gap between operating cash flow and capital expenditure, as it widened considerably this quarter.