Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than both the prior quarter and the same quarter last year. Operating cash flow decreased sharply, resulting in a negative free cash flow and a weakened margin.
- Operating cash flow was a small fraction of revenue, while capital expenditure remained substantial, leading to a negative free cash flow and margin. The conversion of revenue into cash was poor compared to prior periods.
- Compared to the preceding quarter, revenue declined, operating cash flow dropped significantly, and free cash flow became more negative. Relative to the same quarter last year, all metrics were lower, with free cash flow moving from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$693.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$285.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$7.5M
Cash generated by operations before capital spending.
CapEx
$293.2M
Capital spending and related asset purchases.
FCF margin
-7.7%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $3.9B | $276.2M | $333.7M | -$57.5M | -1.5% |
| 2024-12-31 | $4.0B | $45.6M | $344.3M | -$298.7M | -7.5% |
| 2025-03-31 | $3.9B | $206.8M | $258.4M | -$51.7M | -1.3% |
| 2025-06-30 | $3.7B | $7.5M | $293.2M | -$285.7M | -7.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.9% | 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 fell sharply from the prior quarter and from the same quarter last year, while capital expenditure was relatively stable, causing free cash flow to worsen.
The decline in operating cash flow is the primary factor behind the negative free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was a small fraction of revenue, while capital expenditure remained substantial, leading to a negative free cash flow and margin. The conversion of revenue into cash was poor compared to prior periods.
Compared to the preceding quarter, revenue declined, operating cash flow dropped significantly, and free cash flow became more negative. Relative to the same quarter last year, all metrics were lower, with free cash flow moving from positive to negative.
The trajectory of operating cash flow given its substantial decline from both the prior quarter and the year-ago period.