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 increased compared to the prior quarter and the same quarter last year. Free cash flow turned negative this quarter after a positive prior quarter, but improved significantly from a deeply negative year-ago level.
- Operating cash flow as a share of revenue was stable compared to the prior quarter and higher than a year ago. Capital expenditure remained elevated relative to operating cash flow, resulting in a slightly negative free cash flow margin.
- Compared to the prior quarter, revenue was higher while free cash flow shifted from positive to negative. Versus the same quarter last year, revenue was slightly higher, operating cash flow was substantially higher, and free cash flow was much less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$524.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$26.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
-0.8%
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 | $3.0B | $642.1M | $1.2B | -$546.5M | -18.4% |
| 2025-03-31 | $4.1B | $1.0B | $1.0B | $33.2M | 0.8% |
| 2025-06-30 | $2.8B | $1.1B | $1.0B | $15.3M | 0.5% |
| 2025-09-30 | $3.2B | $1.1B | $1.1B | -$26.3M | -0.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -7.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 35.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$27.7B | 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 materially higher than the same quarter last year, narrowing the gap with capital expenditure and significantly reducing the free cash flow deficit.
The stronger operating cash flow was the main reason free cash flow improved year over year despite sustained capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was stable compared to the prior quarter and higher than a year ago. Capital expenditure remained elevated relative to operating cash flow, resulting in a slightly negative free cash flow margin.
Compared to the prior quarter, revenue was higher while free cash flow shifted from positive to negative. Versus the same quarter last year, revenue was slightly higher, operating cash flow was substantially higher, and free cash flow was much less negative.
Monitor whether capital expenditure continues to exceed operating cash flow, as this has been the primary factor behind the negative free cash flow.