Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The current quarter’s free cash flow remained negative, though the deficit narrowed compared to the same period last year. Operating cash flow improved from a year earlier, but higher capital expenditure relative to revenue kept the cash conversion under pressure.
- Revenue increased from both the prior quarter and the year-ago quarter, but operating cash flow was lower than the prior quarter while higher than a year ago. Capital expenditure remained elevated, resulting in a negative free cash flow margin that weakened from the prior quarter but improved from the year-ago period.
- Compared to the prior quarter, operating cash flow was lower and the free cash flow deficit widened. Relative to the same quarter a year earlier, operating cash flow and revenue were higher, and the free cash flow deficit narrowed.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$746.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$1.9B
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 | $5.4B | $1.5B | $1.7B | -$237.0M | -4.4% |
| 2024-09-30 | $6.2B | $1.7B | $1.7B | -$6.0M | -0.1% |
| 2024-12-31 | $5.5B | $1.4B | $1.9B | -$510.0M | -9.3% |
| 2025-03-31 | $6.7B | $1.2B | $1.9B | -$746.0M | -11.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -82.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 29.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year operating cash flow improvement
Operating cash flow rose compared to the same quarter last year, driven by higher revenue. This improvement helped reduce the free cash flow deficit despite a slightly higher capital expenditure.
Continued operating cash flow growth is essential to offset ongoing capital spending and move toward positive free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter, but operating cash flow was lower than the prior quarter while higher than a year ago. Capital expenditure remained elevated, resulting in a negative free cash flow margin that weakened from the prior quarter but improved from the year-ago period.
Compared to the prior quarter, operating cash flow was lower and the free cash flow deficit widened. Relative to the same quarter a year earlier, operating cash flow and revenue were higher, and the free cash flow deficit narrowed.
Monitor the trend in capital expenditure, which remained stable relative to the prior quarter but increased from a year ago, as it directly affects free cash flow generation.