Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned deeply negative as capital expenditure rose sharply, while revenue and operating cash flow declined sequentially. Compared with the same quarter last year, revenue improved but free cash flow worsened due to higher capital spending.
- Revenue decreased sequentially, operating cash flow more than halved, and capital expenditure increased, resulting in a negative free cash flow and a sharply lower free cash flow margin. The conversion from revenue to free cash flow weakened significantly.
- Compared with the prior quarter, revenue, operating cash flow, and free cash flow all declined, and the free cash flow margin worsened from positive to negative. Versus the same quarter a year ago, revenue was higher and operating cash flow was lower, while capital expenditure rose substantially, causing free cash flow to become more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$751.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$530.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$334.0M
Cash generated by operations before capital spending.
CapEx
$864.5M
Capital spending and related asset purchases.
FCF margin
-41.1%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $1.3B | $449.6M | $592.8M | -$143.2M | -11.1% |
| 2025-06-30 | $1.4B | $323.9M | $627.3M | -$303.4M | -22.4% |
| 2025-09-30 | $1.8B | $937.7M | $712.3M | $225.4M | 12.8% |
| 2025-12-31 | $1.3B | $334.0M | $864.5M | -$530.5M | -41.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -629.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 66.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.4B | 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 rose compared with both the immediately preceding quarter and the same quarter one year earlier. This increase was the strongest observable factor behind the swing to a negative free cash flow and the decline in margin.
Free cash flow turned from positive to negative and the margin worsened significantly, driven by the higher capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased sequentially, operating cash flow more than halved, and capital expenditure increased, resulting in a negative free cash flow and a sharply lower free cash flow margin. The conversion from revenue to free cash flow weakened significantly.
Compared with the prior quarter, revenue, operating cash flow, and free cash flow all declined, and the free cash flow margin worsened from positive to negative. Versus the same quarter a year ago, revenue was higher and operating cash flow was lower, while capital expenditure rose substantially, causing free cash flow to become more negative.
Monitor the trajectory of capital expenditure relative to operating cash flow, as elevated spending has driven free cash flow deeply negative.