Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened as operating cash flow declined sequentially while capital expenditure rose. Free cash flow was more negative compared to both the prior quarter and the same period last year.
- Revenue was higher than both prior periods. Operating cash flow increased from a year ago but decreased from the prior quarter. Capital expenditure was higher than both, leading to a more negative free cash flow margin.
- Compared to the prior quarter, operating cash flow was lower and capital expenditure was higher, resulting in a wider negative free cash flow margin. Versus the same quarter last year, operating cash flow improved but capital expenditure increased more, leaving free cash flow lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$471.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$845.0M
Cash generated by operations before capital spending.
CapEx
$1.3B
Capital spending and related asset purchases.
FCF margin
-11.4%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $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% |
| 2025-09-30 | $4.1B | $845.0M | $1.3B | -$471.0M | -11.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -106.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 31.7% | 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 Spending Pressure
Capital expenditure rose sequentially and year-over-year, outpacing the increase in operating cash flow from a year ago and coinciding with a decline from the prior quarter. This drove free cash flow deeper negative.
If capital expenditure remains elevated while operating cash flow does not keep pace, free cash flow may continue to be pressured.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both prior periods. Operating cash flow increased from a year ago but decreased from the prior quarter. Capital expenditure was higher than both, leading to a more negative free cash flow margin.
Compared to the prior quarter, operating cash flow was lower and capital expenditure was higher, resulting in a wider negative free cash flow margin. Versus the same quarter last year, operating cash flow improved but capital expenditure increased more, leaving free cash flow lower.
Monitor the trend of capital expenditure relative to operating cash flow, as it is the primary factor behind the negative free cash flow.