Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter and the same quarter last year. However, free cash flow turned more negative as capital expenditure increased significantly.
- Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter, indicating improved cash conversion from revenue. The free cash flow margin weakened because capital expenditure grew faster than operating cash flow.
- Compared to the prior quarter, revenue and operating cash flow were higher, but capital expenditure also rose, leading to a more negative free cash flow and a lower free cash flow margin. Versus the same quarter last year, revenue and operating cash flow were higher, while capital expenditure increased substantially, resulting in a larger free cash flow deficit and a weaker margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$400.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$292.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$1.4B
Capital spending and related asset purchases.
FCF margin
-12.1%
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 | $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% |
| 2025-12-31 | $2.4B | $1.1B | $1.4B | -$292.0M | -12.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -110.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 59.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 from both the prior quarter and the year-ago quarter, outpacing the growth in operating cash flow. This was the strongest observable factor behind the more negative free cash flow.
The higher capital expenditure directly reduced free cash flow and weakened the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter, indicating improved cash conversion from revenue. The free cash flow margin weakened because capital expenditure grew faster than operating cash flow.
Compared to the prior quarter, revenue and operating cash flow were higher, but capital expenditure also rose, leading to a more negative free cash flow and a lower free cash flow margin. Versus the same quarter last year, revenue and operating cash flow were higher, while capital expenditure increased substantially, resulting in a larger free cash flow deficit and a weaker margin.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the widening gap drove the free cash flow decline.