Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, but free cash flow margin weakened as capital expenditure rose and operating cash flow declined relative to the prior quarter. The free cash flow deficit was larger than both comparable periods.
- Revenue was higher, but operating cash flow was lower than the prior quarter while higher than a year ago. Capital expenditure increased from both prior periods, resulting in a more negative free cash flow and a lower free cash flow margin.
- Compared to the prior quarter, free cash flow was more negative and margin weakened; versus the same quarter last year, free cash flow was also more negative and margin weakened. Revenue was higher in both comparisons.
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
-$635.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$343.0M
Cash generated by operations before capital spending.
CapEx
$978.0M
Capital spending and related asset purchases.
FCF margin
-32.2%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-09-30 | $2.0B | $343.0M | $978.0M | -$635.0M | -32.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -229.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 49.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$17.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital expenditure
Capital expenditure was higher than both the prior quarter and the same quarter last year, while operating cash flow was lower than the prior quarter. This combination drove the more negative free cash flow and weaker margin.
The increased capital expenditure relative to operating cash flow was the primary factor in the quarter's larger free cash flow deficit.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, but operating cash flow was lower than the prior quarter while higher than a year ago. Capital expenditure increased from both prior periods, resulting in a more negative free cash flow and a lower free cash flow margin.
Compared to the prior quarter, free cash flow was more negative and margin weakened; versus the same quarter last year, free cash flow was also more negative and margin weakened. Revenue was higher in both comparisons.
Monitor the gap between capital expenditure and operating cash flow, as it widened this quarter.