Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than a year ago. Free cash flow turned negative from a positive position a year earlier, driven by a larger gap between operating cash flow and capital expenditure.
- Operating cash flow improved relative to both the prior quarter and the year-ago quarter, but capital expenditure also increased, resulting in a negative free cash flow margin that weakened from both comparison periods.
- Compared to the immediately preceding quarter, revenue was stable while free cash flow and free cash flow margin both weakened. Versus the same quarter one year earlier, revenue was higher, operating cash flow was higher, but free cash flow turned negative from positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$114.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$122.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
-5.3%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $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% |
| 2025-09-30 | $2.3B | $1.0B | $1.1B | -$122.0M | -5.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -32.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 49.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$15.3B | 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 Growth
Capital expenditure increased compared to both the prior quarter and the year-ago quarter, outpacing the improvement in operating cash flow. This was the strongest observable factor behind the shift to negative free cash flow.
The higher capital expenditure directly reduced free cash flow and free cash flow margin compared to both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved relative to both the prior quarter and the year-ago quarter, but capital expenditure also increased, resulting in a negative free cash flow margin that weakened from both comparison periods.
Compared to the immediately preceding quarter, revenue was stable while free cash flow and free cash flow margin both weakened. Versus the same quarter one year earlier, revenue was higher, operating cash flow was higher, but free cash flow turned negative from positive.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the widening gap drove the negative free cash flow.