Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative as operating cash flow fell while capital spending remained near the prior quarter's level. Revenue decreased from both the preceding quarter and the same quarter one year earlier.
- Operating cash flow declined relative to revenue, resulting in a negative free cash flow margin. Capital expenditure stayed elevated, absorbing most of the cash generated from operations.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow both weakened, while capital spending was stable. Versus the same quarter a year ago, all major cash flow metrics were lower, with free cash flow moving from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$114.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
-2.0%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $6.4B | $2.0B | $1.1B | $840.0M | 13.1% |
| 2024-09-30 | $6.7B | $1.9B | $1.2B | $673.0M | 10.1% |
| 2024-12-31 | $5.9B | $1.4B | $1.2B | $197.0M | 3.4% |
| 2025-03-31 | $5.6B | $1.1B | $1.2B | -$114.0M | -2.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -14.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 21.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.0B | 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 weakness
The largest observable driver of the free cash flow decline was a reduction in operating cash flow, which fell compared to both the prior quarter and the year-ago period. Capital expenditure did not change materially, so the shift in cash generation was the primary factor.
The negative free cash flow margin indicates that cash from operations was insufficient to cover capital spending during the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow declined relative to revenue, resulting in a negative free cash flow margin. Capital expenditure stayed elevated, absorbing most of the cash generated from operations.
Compared with the immediately preceding quarter, operating cash flow and free cash flow both weakened, while capital spending was stable. Versus the same quarter a year ago, all major cash flow metrics were lower, with free cash flow moving from positive to negative.
Monitor the trajectory of operating cash flow in upcoming quarters, given its significant decline this period.