Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative and weakened compared to both the prior quarter and the same quarter last year. The decline was driven by a significant increase in capital expenditure, which outpaced the improvement in operating cash flow.
- Revenue increased, and operating cash flow improved from the prior quarter, but capital expenditure rose more sharply, resulting in a wider negative free cash flow and a lower free cash flow margin.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, but capital expenditure increased substantially, causing free cash flow to become more negative and the margin to weaken. Versus the same quarter one year earlier, revenue was higher, but operating cash flow was significantly lower, capital expenditure was higher, 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
-$103.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$95.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$57.9M
Cash generated by operations before capital spending.
CapEx
$153.6M
Capital spending and related asset purchases.
FCF margin
-5.7%
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 | $1.5B | $163.0M | $111.8M | $51.1M | 3.4% |
| 2025-06-30 | $1.5B | $130.3M | $131.3M | -$1.1M | -0.1% |
| 2025-09-30 | $1.6B | $46.0M | $103.9M | -$58.0M | -3.7% |
| 2025-12-31 | $1.7B | $57.9M | $153.6M | -$95.7M | -5.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -64.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.5B | 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 Increase
Capital expenditure rose compared to both the prior quarter and the same quarter last year, significantly exceeding the growth in operating cash flow. This was the strongest observable driver of the decline in free cash flow.
The higher capital expenditure directly caused free cash flow to become more negative and the margin to weaken.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, and operating cash flow improved from the prior quarter, but capital expenditure rose more sharply, resulting in a wider negative free cash flow and a lower free cash flow margin.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, but capital expenditure increased substantially, causing free cash flow to become more negative and the margin to weaken. Versus the same quarter one year earlier, revenue was higher, but operating cash flow was significantly lower, capital expenditure was higher, and free cash flow turned from positive to negative.
Monitor the trajectory of capital expenditure, as its elevated level was the primary factor behind the negative free cash flow.