Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's free cash flow was negative but improved compared to both the prior quarter and the same quarter last year. Revenue was lower than both comparable periods, while operating cash flow was stable compared to the prior quarter and higher than a year ago.
- Cash conversion was negative as capital expenditure exceeded operating cash flow, resulting in a negative free cash flow margin. The margin improved from the prior quarter and the year-ago quarter.
- Revenue was lower than both the prior quarter and the same quarter last year. Operating cash flow was stable versus the prior quarter and higher than a year ago, while capital expenditure decreased from the prior quarter but increased from a year ago. Free cash flow and margin improved sequentially and year-over-year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$641.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$184.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$1.4B
Capital spending and related asset purchases.
FCF margin
-4.8%
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 | $4.3B | $329.0M | $1.4B | -$1.1B | -25.2% |
| 2024-09-30 | $5.2B | $2.5B | $1.5B | $961.0M | 18.5% |
| 2024-12-31 | $4.0B | $1.2B | $1.5B | -$326.0M | -8.2% |
| 2025-03-31 | $3.8B | $1.2B | $1.4B | -$184.0M | -4.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -12.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 36.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$37.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Free Cash Flow Margin Improvement
The free cash flow margin, while still negative, improved from the prior quarter and the year-ago quarter, reflecting a narrower gap between operating cash flow and capital expenditure.
The improved margin supports a stronger cash position relative to those same periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion was negative as capital expenditure exceeded operating cash flow, resulting in a negative free cash flow margin. The margin improved from the prior quarter and the year-ago quarter.
Revenue was lower than both the prior quarter and the same quarter last year. Operating cash flow was stable versus the prior quarter and higher than a year ago, while capital expenditure decreased from the prior quarter but increased from a year ago. Free cash flow and margin improved sequentially and year-over-year.
Monitor the trajectory of capital expenditure relative to operating cash flow, given the company's ongoing capital investment program.