Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative for the quarter, although it improved significantly compared to the same period last year. Revenue increased sequentially, but higher capital spending and a lower operating cash flow relative to the prior quarter weighed on free cash flow.
- Operating cash flow turned positive from a year ago, yet the conversion from revenue remained weak due to elevated capital expenditure, resulting in a negative free cash flow margin.
- Compared to the preceding quarter, free cash flow weakened as operating cash flow declined and capital expenditure remained elevated. However, relative to the same quarter last year, free cash flow improved substantially, driven by stronger operating cash generation.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$677.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$368.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$637.0M
Cash generated by operations before capital spending.
CapEx
$1.0B
Capital spending and related asset purchases.
FCF margin
-9.8%
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 | $3.3B | $1.1B | $942.0M | $170.0M | 5.2% |
| 2024-09-30 | $3.7B | $775.0M | $1.0B | -$229.0M | -6.1% |
| 2024-12-31 | $3.2B | $1.0B | $1.3B | -$250.0M | -7.9% |
| 2025-03-31 | $3.8B | $637.0M | $1.0B | -$368.0M | -9.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -102.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 26.7% | 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 intensity
Capital expenditure exceeded operating cash flow in the current quarter, contributing to the negative free cash flow. While the absolute spending was lower than the previous quarter, it remained high relative to revenue.
Unless operating cash flow grows faster, sustained high capital spending will continue to pressure free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow turned positive from a year ago, yet the conversion from revenue remained weak due to elevated capital expenditure, resulting in a negative free cash flow margin.
Compared to the preceding quarter, free cash flow weakened as operating cash flow declined and capital expenditure remained elevated. However, relative to the same quarter last year, free cash flow improved substantially, driven by stronger operating cash generation.
Monitor whether operating cash flow can sustain its positive trajectory as capital expenditure remains a significant use of cash.