Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened significantly in the current quarter, with operating cash flow turning negative and free cash flow deeply negative. The company's management reviews results against both the prior quarter and the same quarter last year, as described in the filing.
- Revenue was lower than both the prior quarter and the same quarter last year. Operating cash flow was negative, a sharp reversal from positive figures in both comparison periods. Capital expenditure remained at a similar level, resulting in a negative free cash flow and a negative free cash flow margin.
- Compared to the prior quarter, revenue decreased slightly, operating cash flow moved from positive to negative, and free cash flow became more negative. Compared to the same quarter last year, revenue was lower, operating cash flow swung from positive to negative, 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
-$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$470.0M
Cash generated by operations before capital spending.
CapEx
$662.0M
Capital spending and related asset purchases.
FCF margin
-11.2%
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 | $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% |
| 2025-06-30 | $10.1B | -$470.0M | $662.0M | -$1.1B | -11.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 135.6% | 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 deterioration
Operating cash flow moved from positive in the prior quarter and the year-ago quarter to negative in the current quarter. This decline was the primary factor behind the negative free cash flow.
The negative operating cash flow, combined with ongoing capital expenditure, resulted in a significant free cash outflow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the same quarter last year. Operating cash flow was negative, a sharp reversal from positive figures in both comparison periods. Capital expenditure remained at a similar level, resulting in a negative free cash flow and a negative free cash flow margin.
Compared to the prior quarter, revenue decreased slightly, operating cash flow moved from positive to negative, and free cash flow became more negative. Compared to the same quarter last year, revenue was lower, operating cash flow swung from positive to negative, and free cash flow turned from positive to negative.
Monitor operating cash flow trends in the upcoming quarters, given the sharp decline from the prior quarter.