Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative this quarter as capital expenditure remained elevated while operating cash flow declined sharply. Revenue also decreased from the prior quarter, contributing to a weakened cash conversion profile.
- Operating cash flow fell relative to revenue, and with capital expenditure remaining high, free cash flow became negative. The free cash flow margin worsened compared to both the prior quarter and the same quarter last year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, while free cash flow swung from positive to negative. Versus the same quarter one year earlier, revenue was higher but operating cash flow was lower, and free cash flow turned from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
-$470.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$414.0M
Cash generated by operations before capital spending.
CapEx
$884.0M
Capital spending and related asset purchases.
FCF margin
-26.1%
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 | $1.7B | $304.0M | $806.0M | -$502.0M | -29.3% |
| 2024-12-31 | $1.9B | $403.0M | n/a | n/a | n/a |
| 2025-03-31 | $2.4B | $1.0B | $888.0M | $112.0M | 4.7% |
| 2025-06-30 | $1.8B | $414.0M | $884.0M | -$470.0M | -26.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -233.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 49.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$17.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Elevated Capital Expenditure vs. Weakening Operating Cash Flow
Capital expenditure remained broadly stable at a high level compared to the prior quarter, while operating cash flow dropped significantly. This imbalance was the strongest observable driver of the negative free cash flow.
The gap between operating cash flow and capital expenditure widened sharply, turning free cash flow deeply negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow fell relative to revenue, and with capital expenditure remaining high, free cash flow became negative. The free cash flow margin worsened compared to both the prior quarter and the same quarter last year.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, while free cash flow swung from positive to negative. Versus the same quarter one year earlier, revenue was higher but operating cash flow was lower, and free cash flow turned from positive to negative.
Monitor the trajectory of operating cash flow relative to capital expenditure, as their divergence drives the negative free cash flow.