Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved sequentially, but free cash flow remained deeply negative due to continued high capital expenditure. Compared to the same quarter last year, free cash flow weakened as capital spending rose faster than revenue.
- Revenue was lower than the prior quarter, but operating cash flow increased, indicating a higher cash conversion rate from revenue. However, capital expenditure far exceeded operating cash flow, resulting in a negative free cash flow margin that widened compared to the year-ago quarter.
- Compared to the prior quarter, operating cash flow improved while revenue declined, leading to a narrower negative free cash flow. Versus the same quarter last year, operating cash flow was slightly lower, but capital expenditure was substantially higher, causing a much larger negative free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$569.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$560.0M
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
-29.1%
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 | $1.8B | $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% |
| 2025-06-30 | $2.0B | $560.0M | $1.1B | -$569.0M | -29.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -287.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 57.8% | 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.
Elevated Capital Expenditure
Capital expenditure in the current quarter was the highest among the three periods compared, significantly exceeding operating cash flow. This was the primary factor driving the large negative free cash flow.
Unless operating cash flow rises or capital spending moderates, free cash flow will likely remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, but operating cash flow increased, indicating a higher cash conversion rate from revenue. However, capital expenditure far exceeded operating cash flow, resulting in a negative free cash flow margin that widened compared to the year-ago quarter.
Compared to the prior quarter, operating cash flow improved while revenue declined, leading to a narrower negative free cash flow. Versus the same quarter last year, operating cash flow was slightly lower, but capital expenditure was substantially higher, causing a much larger negative free cash flow.
Monitor the trend of capital expenditure relative to operating cash flow, as ongoing high investment keeps free cash flow deeply negative.