Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow was negative, driven by operating cash flow that was significantly lower than both the prior quarter and the year-ago quarter. Capital expenditure remained elevated relative to operating cash flow, resulting in a weakened free cash flow margin.
- Revenue was stable compared to the prior quarter, but operating cash flow declined sharply, leading to a negative free cash flow after capital spending. The conversion of revenue into cash was weaker than in the preceding quarter and the same quarter last year.
- Compared to the prior quarter, free cash flow turned from positive to negative, and the margin worsened. Versus the same quarter a year earlier, free cash flow was more negative despite lower capital expenditure, as operating cash flow was substantially lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$370.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$594.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$91.0M
Cash generated by operations before capital spending.
CapEx
$685.0M
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $10.9B | $836.0M | $723.0M | $113.0M | 1.0% |
| 2024-09-30 | $10.9B | $800.0M | $736.0M | $64.0M | 0.6% |
| 2024-12-31 | $10.4B | $814.0M | $767.0M | $47.0M | 0.5% |
| 2025-03-31 | $10.4B | $91.0M | $685.0M | -$594.0M | -5.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 193.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.6% | 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.
Operating cash flow decline
Operating cash flow fell sharply from the prior quarter and was also lower than the year-ago period, while revenue remained relatively stable. This decline was the strongest observable factor behind the negative free cash flow.
The weakened cash generation from operations constrained free cash flow despite a slight reduction in capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter, but operating cash flow declined sharply, leading to a negative free cash flow after capital spending. The conversion of revenue into cash was weaker than in the preceding quarter and the same quarter last year.
Compared to the prior quarter, free cash flow turned from positive to negative, and the margin worsened. Versus the same quarter a year earlier, free cash flow was more negative despite lower capital expenditure, as operating cash flow was substantially lower.
Monitor the trajectory of operating cash flow in upcoming quarters, as its decline was the primary factor behind the negative free cash flow.