Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative this quarter as operating cash flow declined while capital expenditure rose sharply versus the prior quarter. Compared to the same quarter last year, free cash flow weakened further despite higher revenue.
- Revenue came in lower than the previous quarter but above the year-ago level. Operating cash flow as a proportion of revenue declined sequentially, while capital expenditure increased, leading to a negative free cash flow margin. This indicates a weakened cash conversion efficiency period over period.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was higher. Versus the same quarter a year ago, revenue improved and capital expenditure increased, but operating cash flow was lower, and free cash flow turned more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$909.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$2.1B
Capital spending and related asset purchases.
FCF margin
-30.7%
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 | $2.8B | $536.2M | $1.7B | -$1.1B | -39.5% |
| 2025-06-30 | $3.3B | $1.3B | $2.0B | -$746.6M | -22.4% |
| 2025-09-30 | $3.8B | $2.1B | $1.9B | $246.0M | 6.5% |
| 2025-12-31 | $3.0B | $1.2B | $2.1B | -$909.7M | -30.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -378.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 71.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$28.3B | 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 Surge
Capital expenditure increased from both the prior quarter and the same quarter last year, while operating cash flow declined sequentially. This combination was the strongest observable factor behind the negative free cash flow result.
The elevated capital outlay more than offset the operating cash inflow, driving free cash flow deeply negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue came in lower than the previous quarter but above the year-ago level. Operating cash flow as a proportion of revenue declined sequentially, while capital expenditure increased, leading to a negative free cash flow margin. This indicates a weakened cash conversion efficiency period over period.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was higher. Versus the same quarter a year ago, revenue improved and capital expenditure increased, but operating cash flow was lower, and free cash flow turned more negative.
Monitor the trajectory of capital expenditure, which rose significantly this quarter, as it directly pressures free cash flow generation.