Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative in the quarter, driven by capital expenditure exceeding operating cash flow. Revenue and operating cash flow both decreased compared to the prior quarter, while capital expenditure increased.
- Operating cash flow of more than a quarter of revenue was insufficient to cover capital expenditure, resulting in a negative free cash flow margin. The conversion from revenue to free cash flow was pressured by elevated capital spending.
- Compared to the prior quarter, free cash flow turned from positive to negative as capital expenditure rose and operating cash flow fell. Versus the same quarter one year ago, free cash flow remained negative but was essentially stable in magnitude, with a slightly improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$715.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$319.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$1.9B
Capital spending and related asset purchases.
FCF margin
-6.1%
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 | $3.8B | $1.2B | $1.4B | -$184.0M | -4.8% |
| 2025-06-30 | $4.5B | $882.0M | $1.7B | -$830.0M | -18.3% |
| 2025-09-30 | $5.8B | $2.1B | $1.5B | $618.0M | 10.7% |
| 2025-12-31 | $5.2B | $1.6B | $1.9B | -$319.0M | -6.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -17.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 36.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$37.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure was the strongest observable driver, rising compared to both the prior quarter and the year-ago quarter. This increase outpaced operating cash flow generation, leading to the negative free cash flow.
Higher capital expenditure directly reduced free cash flow and kept the margin negative in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of more than a quarter of revenue was insufficient to cover capital expenditure, resulting in a negative free cash flow margin. The conversion from revenue to free cash flow was pressured by elevated capital spending.
Compared to the prior quarter, free cash flow turned from positive to negative as capital expenditure rose and operating cash flow fell. Versus the same quarter one year ago, free cash flow remained negative but was essentially stable in magnitude, with a slightly improved margin.
Monitor the trend of capital expenditure relative to operating cash flow, as the gap widened in the current quarter.