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 in the quarter, with margin weakening from both the prior quarter and the same quarter a year ago. The decline was driven by lower operating cash flow coupled with higher capital expenditure.
- Revenue decreased compared to the previous quarter and was slightly lower than a year ago. Operating cash flow declined more sharply than revenue, while capital expenditure increased, resulting in a negative free cash flow and a significantly weakened margin.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was higher. Versus the same quarter last year, operating cash flow weakened and capital expenditure rose, leading to 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
-$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$2.4B
Capital spending and related asset purchases.
FCF margin
-22.0%
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 | $6.7B | $1.2B | $1.9B | -$746.0M | -11.1% |
| 2025-06-30 | $5.4B | $1.5B | $2.0B | -$502.0M | -9.3% |
| 2025-09-30 | $6.7B | $2.3B | $2.1B | $163.0M | 2.4% |
| 2025-12-31 | $5.4B | $1.2B | $2.4B | -$1.2B | -22.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -200.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 45.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$48.8B | 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 and Operating Cash Flow Imbalance
Operating cash flow declined from both the prior quarter and the year-ago quarter, while capital expenditure increased over the same periods. This combination drove free cash flow deeply negative and materially weakened margin.
The imbalance between lower operating cash flow and higher capital expenditure will pressure free cash flow until one of the components shifts favorably.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased compared to the previous quarter and was slightly lower than a year ago. Operating cash flow declined more sharply than revenue, while capital expenditure increased, resulting in a negative free cash flow and a significantly weakened margin.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was higher. Versus the same quarter last year, operating cash flow weakened and capital expenditure rose, leading to a more negative free cash flow and margin.
Monitor whether capital expenditure remains elevated or if operating cash flow can improve in coming quarters to support free cash flow recovery.