Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative but improved substantially versus the same quarter last year, driven by a significant increase in operating cash flow that outpaced higher capital expenditure. The current quarter's cash conversion weakened sequentially as operating cash flow declined from the prior quarter while capital expenditure rose.
- Revenue rose in the current quarter compared to both the prior quarter and the same quarter a year ago. Operating cash flow improved markedly year over year but decreased from the preceding quarter. Capital expenditure increased both sequentially and year over year, resulting in a narrower negative free cash flow margin relative to the year-ago period but a wider negative margin versus the prior quarter.
- Compared to the prior quarter, revenue and capital expenditure were higher, while operating cash flow and free cash flow were lower, with free cash flow margin weakening. Compared to the same quarter last year, all metrics except free cash flow (which improved) were higher; free cash flow margin also improved year over year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$379.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$830.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$882.0M
Cash generated by operations before capital spending.
CapEx
$1.7B
Capital spending and related asset purchases.
FCF margin
-18.3%
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 | $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% |
| 2025-06-30 | $4.5B | $882.0M | $1.7B | -$830.0M | -18.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -242.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 37.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$37.5B | 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 Improvement
Operating cash flow was substantially higher than the same quarter last year, narrowing the negative free cash flow gap despite elevated capital spending. This was the strongest observable year-over-year driver of free cash flow improvement.
The year-over-year rise in operating cash flow reduced the negative free cash flow and improved the free cash flow margin compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose in the current quarter compared to both the prior quarter and the same quarter a year ago. Operating cash flow improved markedly year over year but decreased from the preceding quarter. Capital expenditure increased both sequentially and year over year, resulting in a narrower negative free cash flow margin relative to the year-ago period but a wider negative margin versus the prior quarter.
Compared to the prior quarter, revenue and capital expenditure were higher, while operating cash flow and free cash flow were lower, with free cash flow margin weakening. Compared to the same quarter last year, all metrics except free cash flow (which improved) were higher; free cash flow margin also improved year over year.
Monitor the trajectory of capital expenditure, as it increased both sequentially and year over year while operating cash flow declined sequentially, pressuring free cash flow.