Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative in the first quarter, though the deficit narrowed significantly compared to the same quarter last year. Operating cash flow improved while capital expenditure decreased relative to the prior year period.
- Revenue was stable compared to the prior year quarter, while operating cash flow increased and capital expenditure decreased, leading to a less negative free cash flow and an improved free cash flow margin.
- Compared to the preceding quarter, revenue was higher, operating cash flow increased, and capital expenditure rose, resulting in a more negative free cash flow and a slightly weaker free cash flow margin. Versus the same quarter last year, revenue was stable, operating cash flow improved, capital expenditure was lower, and free cash flow was less negative with a stronger margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$194.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$143.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$449.6M
Cash generated by operations before capital spending.
CapEx
$592.8M
Capital spending and related asset purchases.
FCF margin
-11.1%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $1.4B | $317.5M | $677.5M | -$360.0M | -25.6% |
| 2024-09-30 | $1.8B | $953.3M | $526.3M | $427.0M | 23.9% |
| 2024-12-31 | $1.2B | $395.6M | $514.2M | -$118.6M | -9.7% |
| 2025-03-31 | $1.3B | $449.6M | $592.8M | -$143.2M | -11.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -114.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 45.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.0B | 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 increased compared to both the prior quarter and the same quarter last year, providing a stronger base for funding capital expenditure.
Higher operating cash flow reduced the free cash flow deficit despite increased capital spending versus the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior year quarter, while operating cash flow increased and capital expenditure decreased, leading to a less negative free cash flow and an improved free cash flow margin.
Compared to the preceding quarter, revenue was higher, operating cash flow increased, and capital expenditure rose, resulting in a more negative free cash flow and a slightly weaker free cash flow margin. Versus the same quarter last year, revenue was stable, operating cash flow improved, capital expenditure was lower, and free cash flow was less negative with a stronger margin.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the gap between them continues to drive negative free cash flow.