Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared with both the prior quarter and the same quarter last year, while free cash flow remained negative. Operating cash flow improved year over year but declined sequentially, and capital expenditure rose year over year but fell from the prior quarter.
- Cash conversion weakened from the year-ago quarter, as the free cash flow margin declined despite higher revenue and improved operating cash flow. Margin also improved sequentially, but the absolute free cash flow deficit narrowed compared with the prior quarter.
- Compared with the immediately preceding quarter, revenue was higher, operating cash flow was lower, capital expenditure was lower, and free cash flow deficit was smaller. Compared with the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was higher, and free cash flow deficit was larger.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$628.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$410.0M
Cash generated by operations before capital spending.
CapEx
$1.0B
Capital spending and related asset purchases.
FCF margin
-21.2%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $1.9B | $576.0M | $812.0M | -$236.0M | -12.4% |
| 2024-09-30 | $1.8B | $136.0M | $844.0M | -$708.0M | -38.3% |
| 2024-12-31 | $2.2B | $889.0M | $2.0B | -$1.1B | -51.0% |
| 2025-03-31 | $3.0B | $410.0M | $1.0B | -$628.0M | -21.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -211.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 35.1% | 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.
Capital expenditure increase year over year
Capital expenditure was higher than in the same quarter last year, outweighing the improvement in operating cash flow. This drove the larger free cash flow deficit compared with the year-ago period.
Sustained capital spending above operating cash flow levels continues to pressure free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened from the year-ago quarter, as the free cash flow margin declined despite higher revenue and improved operating cash flow. Margin also improved sequentially, but the absolute free cash flow deficit narrowed compared with the prior quarter.
Compared with the immediately preceding quarter, revenue was higher, operating cash flow was lower, capital expenditure was lower, and free cash flow deficit was smaller. Compared with the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was higher, and free cash flow deficit was larger.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the gap widened year over year and remains a primary factor behind the negative free cash flow.