Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative as operating cash flow weakened sharply while capital spending remained elevated. The free cash flow margin declined from positive to negative.
- Operating cash flow was significantly lower than revenue, resulting in a negative free cash flow after capital expenditure.
- Compared to the prior quarter, operating cash flow and free cash flow both weakened. Versus the same quarter last year, free cash flow was lower despite a smaller capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$284.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$284.0M
Cash generated by operations before capital spending.
CapEx
$568.0M
Capital spending and related asset purchases.
FCF margin
-3.0%
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 | $10.4B | $91.0M | $685.0M | -$594.0M | -5.7% |
| 2025-06-30 | $10.1B | -$470.0M | $662.0M | -$1.1B | -11.2% |
| 2025-09-30 | $10.0B | $1.1B | $564.0M | $563.0M | 5.6% |
| 2025-12-31 | $9.5B | $284.0M | $568.0M | -$284.0M | -3.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 20.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.0% | 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.
Sharp decline in operating cash flow
The strongest observable driver is the sharp decline in operating cash flow, which overwhelmed the relatively stable capital expenditure.
The negative free cash flow highlights the need for improved cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was significantly lower than revenue, resulting in a negative free cash flow after capital expenditure.
Compared to the prior quarter, operating cash flow and free cash flow both weakened. Versus the same quarter last year, free cash flow was lower despite a smaller capital expenditure.
Monitor whether operating cash flow can recover from its current level.