Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the same quarter last year and declined sequentially, while free cash flow remained negative in the current quarter. Operating cash flow was unchanged year-over-year but improved from the prior quarter, yet higher capital expenditure drove the free cash flow deficit.
- Revenue matched the year-ago level, and operating cash flow was identical to the prior year, but capital expenditure rose relative to both comparison periods, resulting in a larger negative free cash flow and a more negative margin than a year earlier.
- Compared to the prior quarter, revenue was lower and operating cash flow was higher, but capital expenditure increased, leading to a less negative free cash flow. Versus the same quarter last year, revenue was stable, operating cash flow was unchanged, while higher capital expenditure produced a more negative free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$502.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$2.0B
Capital spending and related asset purchases.
FCF margin
-9.3%
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 | $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% |
| 2025-06-30 | $5.4B | $1.5B | $2.0B | -$502.0M | -9.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -128.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 37.1% | 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.
Capital Expenditure Level
Capital expenditure increased compared to both the prior quarter and the same quarter last year, outpacing operating cash flow growth and widening the negative free cash flow.
The higher capital expenditure is the strongest observable factor behind the current quarter's negative free cash flow and margin deterioration.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue matched the year-ago level, and operating cash flow was identical to the prior year, but capital expenditure rose relative to both comparison periods, resulting in a larger negative free cash flow and a more negative margin than a year earlier.
Compared to the prior quarter, revenue was lower and operating cash flow was higher, but capital expenditure increased, leading to a less negative free cash flow. Versus the same quarter last year, revenue was stable, operating cash flow was unchanged, while higher capital expenditure produced a more negative free cash flow and margin.
Capital expenditure relative to operating cash flow, as the gap between them widened compared to both the prior quarter and the year-ago period.