Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the prior quarter but declined compared to the same quarter last year. Operating cash flow decreased significantly, while capital expenditure rose, resulting in negative free cash flow and a negative margin.
- Revenue was higher than the preceding quarter but lower than a year ago. Operating cash flow was lower than both comparison periods, and capital expenditure was higher, leading to free cash flow that was negative and a free cash flow margin that turned negative.
- Compared to the immediately preceding quarter, revenue improved, but operating cash flow weakened, capital expenditure increased, and free cash flow shifted from positive to negative. Versus the same quarter one year earlier, revenue was lower, operating cash flow was 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
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$141.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$635.0M
Cash generated by operations before capital spending.
CapEx
$776.0M
Capital spending and related asset purchases.
FCF margin
-3.9%
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 | $3.6B | $1.7B | $625.0M | $1.1B | 29.3% |
| 2024-12-31 | $3.5B | $1.4B | $838.0M | $550.0M | 15.5% |
| 2025-03-31 | $3.4B | $1.3B | $719.0M | $536.0M | 15.7% |
| 2025-06-30 | $3.6B | $635.0M | $776.0M | -$141.0M | -3.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -17.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 21.7% | 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.
Higher Capital Spending
Capital expenditure was higher than both the prior quarter and the same quarter last year, driven in part by incremental property additions for rebuilding after Hurricane Helene as disclosed in the filing.
The elevated capital spending was a primary factor in the negative free cash flow for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the preceding quarter but lower than a year ago. Operating cash flow was lower than both comparison periods, and capital expenditure was higher, leading to free cash flow that was negative and a free cash flow margin that turned negative.
Compared to the immediately preceding quarter, revenue improved, but operating cash flow weakened, capital expenditure increased, and free cash flow shifted from positive to negative. Versus the same quarter one year earlier, revenue was lower, operating cash flow was lower, capital expenditure was higher, and free cash flow turned from positive to negative.
Monitor the level of capital expenditure, particularly the rebuilding costs related to Hurricane Helene as noted in the filing.