Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative, though the deficit narrowed compared to the prior quarter. The year-over-year comparison shows a larger shortfall, driven by a substantial increase in capital expenditure.
- Revenue rose while operating cash flow increased more than proportionally, but a higher capital expenditure more than offset this improvement, resulting in a negative free cash flow margin that improved from the prior quarter yet weakened versus last year.
- Compared to the immediately preceding quarter, free cash flow improved with a smaller negative margin, driven by stronger operating cash flow relative to revenue. Versus the same quarter one year earlier, free cash flow weakened materially as capital expenditure rose significantly despite higher revenue and operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$746.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$2.0B
Capital spending and related asset purchases.
FCF margin
-22.4%
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 | $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% |
| 2025-06-30 | $3.3B | $1.3B | $2.0B | -$746.6M | -22.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -158.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 60.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$28.8B | 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 Pressure
Capital expenditure was the strongest observable driver, rising from both the prior quarter and the year-ago period, and outpacing the growth in operating cash flow. This increase was the main factor widening the free cash flow deficit compared to last year.
Continued high capital expenditure may keep free cash flow negative unless operating cash flow grows at a faster rate.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow increased more than proportionally, but a higher capital expenditure more than offset this improvement, resulting in a negative free cash flow margin that improved from the prior quarter yet weakened versus last year.
Compared to the immediately preceding quarter, free cash flow improved with a smaller negative margin, driven by stronger operating cash flow relative to revenue. Versus the same quarter one year earlier, free cash flow weakened materially as capital expenditure rose significantly despite higher revenue and operating cash flow.
Monitor the trajectory of capital expenditure, as its elevated level relative to operating cash flow is the primary factor sustaining the negative free cash flow.