Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined sequentially but rose compared to the same quarter last year. Free cash flow turned negative versus a year earlier, though it improved from the prior quarter.
- Operating cash flow was stable year-over-year and increased from the previous quarter, while capital expenditure rose both sequentially and annually, resulting in negative free cash flow. The free cash flow margin weakened on a year-over-year basis but improved from the prior quarter.
- Compared to the prior quarter, free cash flow and margin improved, driven by higher operating cash flow despite higher capital spending. Versus the same quarter last year, free cash flow and margin weakened as capital expenditure increased while operating cash flow remained unchanged.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$983.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$136.0M
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
-4.0%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $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% |
| 2025-06-30 | $3.4B | $1.1B | $1.2B | -$136.0M | -4.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -50.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 36.0% | 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.
Operating Cash Flow vs. Capex Balance
Operating cash flow improved sequentially, which helped reduce the free cash flow deficit compared to the prior quarter. However, capital expenditure remained elevated relative to both the prior quarter and the same quarter last year.
The net effect is that free cash flow, while improved sequentially, stayed negative and declined sharply from a year earlier as capex growth outpaced operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was stable year-over-year and increased from the previous quarter, while capital expenditure rose both sequentially and annually, resulting in negative free cash flow. The free cash flow margin weakened on a year-over-year basis but improved from the prior quarter.
Compared to the prior quarter, free cash flow and margin improved, driven by higher operating cash flow despite higher capital spending. Versus the same quarter last year, free cash flow and margin weakened as capital expenditure increased while operating cash flow remained unchanged.
Monitor the gap between operating cash flow and capital expenditure, as rising capex combined with flat operating cash flow year-over-year led to negative free cash flow.