Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow increased compared to both the prior quarter and the year-ago period. However, capital expenditure rose significantly, leading to negative free cash flow and a weaker margin.
- Revenue grew and operating cash flow improved, but the increase in capital expenditure outpaced that growth, resulting in negative free cash flow and a lower conversion margin.
- Compared to the previous quarter, revenue and operating cash flow were higher, but capital expenditure was substantially higher, turning free cash flow from positive to negative. Versus the same quarter last year, revenue and operating cash flow were also higher, yet capital expenditure increased more sharply, causing free cash flow to be much lower and negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$42.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$45.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$944.0M
Cash generated by operations before capital spending.
CapEx
$989.0M
Capital spending and related asset purchases.
FCF margin
-2.0%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $2.2B | $758.0M | $724.0M | $34.0M | 1.5% |
| 2024-12-31 | $2.3B | $981.0M | $987.0M | -$6.0M | -0.3% |
| 2025-03-31 | $2.2B | $809.0M | $750.0M | $59.0M | 2.7% |
| 2025-06-30 | $2.3B | $944.0M | $989.0M | -$45.0M | -2.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -12.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 43.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$14.4B | 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 rose notably compared to both the prior quarter and the year-ago period, more than offsetting the growth in operating cash flow.
The elevated capital expenditure directly caused negative free cash flow and a decline in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue grew and operating cash flow improved, but the increase in capital expenditure outpaced that growth, resulting in negative free cash flow and a lower conversion margin.
Compared to the previous quarter, revenue and operating cash flow were higher, but capital expenditure was substantially higher, turning free cash flow from positive to negative. Versus the same quarter last year, revenue and operating cash flow were also higher, yet capital expenditure increased more sharply, causing free cash flow to be much lower and negative.
Monitor the ratio of capital expenditure to operating cash flow, as it is a key determinant of free cash flow sustainability.