Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved year over year but weakened significantly from the prior quarter, while capital expenditure rose sharply, leading to a larger free cash flow deficit. The free cash flow margin turned more negative compared with both the prior quarter and the same quarter last year.
- Revenue remained stable compared with both the prior quarter and the year-ago quarter. Operating cash flow as a proportion of revenue improved year over year but weakened from the immediately preceding quarter. Capital expenditure increased substantially, consuming a larger share of operating cash flow and driving free cash flow deeper into negative territory.
- Compared with the immediately preceding quarter, free cash flow weakened due to a lower operating cash flow and higher capital expenditure. Compared with the same quarter one year earlier, free cash flow improved despite higher capital expenditure, as operating cash flow increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$536.2M
Cash generated by operations before capital spending.
CapEx
$1.7B
Capital spending and related asset purchases.
FCF margin
-39.5%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $3.0B | $1.0B | $1.2B | -$137.8M | -4.7% |
| 2024-09-30 | $3.4B | $1.6B | $1.1B | $421.8M | 12.4% |
| 2024-12-31 | $2.7B | $1.4B | $1.6B | -$193.8M | -7.1% |
| 2025-03-31 | $2.8B | $536.2M | $1.7B | -$1.1B | -39.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -310.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 58.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$28.1B | 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 notably higher than both the prior quarter and the year-ago quarter. This increase absorbed a much larger portion of operating cash flow, contributing to a more negative free cash flow margin.
The steep rise in capital expenditure was the strongest observable driver of the weaker free cash flow outcome.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable compared with both the prior quarter and the year-ago quarter. Operating cash flow as a proportion of revenue improved year over year but weakened from the immediately preceding quarter. Capital expenditure increased substantially, consuming a larger share of operating cash flow and driving free cash flow deeper into negative territory.
Compared with the immediately preceding quarter, free cash flow weakened due to a lower operating cash flow and higher capital expenditure. Compared with the same quarter one year earlier, free cash flow improved despite higher capital expenditure, as operating cash flow increased.
Monitor the trajectory of capital expenditure, as its increase was the strongest factor behind the larger free cash flow deficit.