Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion remained negative as operating cash flow did not cover elevated capital spending. Free cash flow deficit narrowed year over year but widened sequentially.
- Revenue increased from both the prior quarter and the year-ago quarter, while operating cash flow was higher sequentially but lower year over year. Capital expenditure rose sequentially, yet remained below the year-ago level, resulting in a free cash flow margin that improved relative to the same quarter last year but weakened compared to the prior quarter.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, but capital expenditure also increased, leading to a larger free cash flow deficit and a weaker margin. Versus the same quarter one year earlier, revenue was higher and capital expenditure was lower, producing a narrower free cash flow deficit and a stronger margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$707.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$774.0M
Cash generated by operations before capital spending.
CapEx
$1.5B
Capital spending and related asset purchases.
FCF margin
-29.0%
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 | $3.0B | $410.0M | $1.0B | -$628.0M | -21.2% |
| 2025-06-30 | $2.0B | $560.0M | $1.1B | -$569.0M | -29.1% |
| 2025-09-30 | $2.0B | $742.0M | $1.2B | -$480.0M | -24.1% |
| 2025-12-31 | $2.4B | $774.0M | $1.5B | -$707.0M | -29.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -267.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 60.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$20.5B | 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 pressure
Capital expenditure remained the largest cash outflow, exceeding operating cash flow in all periods shown. While year-over-year spending decreased, the sequential increase drove a wider free cash flow deficit in the current quarter.
Sustained high capital spending relative to operating cash flow constrains free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter, while operating cash flow was higher sequentially but lower year over year. Capital expenditure rose sequentially, yet remained below the year-ago level, resulting in a free cash flow margin that improved relative to the same quarter last year but weakened compared to the prior quarter.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, but capital expenditure also increased, leading to a larger free cash flow deficit and a weaker margin. Versus the same quarter one year earlier, revenue was higher and capital expenditure was lower, producing a narrower free cash flow deficit and a stronger margin.
Monitor the trajectory of capital expenditure relative to operating cash flow given its strong influence on free cash flow.