Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to the prior quarter and the same quarter last year, but operating cash flow turned sharply lower, leading to negative free cash flow. The free cash flow margin weakened significantly, reflecting a cash conversion challenge in the current period.
- Revenue was higher than both the immediately preceding quarter and the same quarter one year earlier, yet operating cash flow dropped substantially, resulting in a free cash flow deficit. The negative free cash flow margin indicates that cash generated from operations was insufficient to cover capital expenditure.
- Compared to the prior quarter, operating cash flow was much lower and free cash flow turned from positive to negative, while revenue was higher. Versus the same quarter last year, operating cash flow and free cash flow were also significantly lower, despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$74.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$109.2M
Cash generated by operations before capital spending.
CapEx
$183.2M
Capital spending and related asset purchases.
FCF margin
-0.1%
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 | $79.1B | $1.0B | $182.3M | $818.1M | 1.0% |
| 2024-12-31 | $81.5B | -$2.7B | $105.9M | -$2.8B | -3.5% |
| 2025-03-31 | $75.5B | $3.4B | $129.1M | $3.2B | 4.3% |
| 2025-06-30 | $80.7B | $109.2M | $183.2M | -$74.0M | -0.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -10.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating cash flow decline
Operating cash flow was substantially lower than both the prior quarter and the same quarter last year, more than offsetting the revenue increase and causing free cash flow to turn negative. The company's liquidity discussion notes that operating results have historically generated cash flows and that future cash flows are expected to be sufficient for ongoing requirements, but the current quarter shows a marked weakening.
The negative free cash flow margin highlights a cash conversion disruption that warrants attention.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the immediately preceding quarter and the same quarter one year earlier, yet operating cash flow dropped substantially, resulting in a free cash flow deficit. The negative free cash flow margin indicates that cash generated from operations was insufficient to cover capital expenditure.
Compared to the prior quarter, operating cash flow was much lower and free cash flow turned from positive to negative, while revenue was higher. Versus the same quarter last year, operating cash flow and free cash flow were also significantly lower, despite higher revenue.
Monitor the trajectory of operating cash flow, as its sharp decline drove the negative free cash flow despite higher revenue.