Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's revenue was lower than the immediately preceding quarter but higher than the same quarter one year earlier. Operating cash flow improved from both prior periods, while capital expenditure declined, leading to a smaller free cash flow deficit and a significantly improved free cash flow margin, although still negative.
- The company converted a portion of its revenue into operating cash flow, but capital expenditure exceeded operating cash flow, resulting in negative free cash flow and a negative free cash flow margin.
- Compared to the prior quarter, revenue declined, operating cash flow rose, capital expenditure fell, and free cash flow deficit narrowed considerably. Versus the same quarter a year earlier, revenue grew, operating cash flow increased slightly, capital expenditure dropped, and the free cash flow deficit also decreased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$30.0M
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
-0.8%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $3.8B | $1.1B | $1.2B | -$30.0M | -0.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 61.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 30.7% | 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.
Improved Operating Cash Flow
Operating cash flow rose from both the prior quarter and the year-ago period, while capital expenditure declined, which together narrowed the free cash flow gap.
The free cash flow deficit was reduced significantly, though it remained negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a portion of its revenue into operating cash flow, but capital expenditure exceeded operating cash flow, resulting in negative free cash flow and a negative free cash flow margin.
Compared to the prior quarter, revenue declined, operating cash flow rose, capital expenditure fell, and free cash flow deficit narrowed considerably. Versus the same quarter a year earlier, revenue grew, operating cash flow increased slightly, capital expenditure dropped, and the free cash flow deficit also decreased.
The trend in operating cash flow and capital expenditure is a key metric to monitor given the sustained negative free cash flow.