Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned more negative this quarter compared to both the prior quarter and the same quarter last year, while revenue grew notably from the preceding period. The cash conversion weakened sharply as operating cash flow fell further into negative territory.
- Despite a higher revenue level, operating cash flow worsened significantly, leading to a much larger free cash outflow and a more negative margin. The conversion from revenue to cash declined substantially.
- Revenue improved compared to the prior quarter and remained stable versus the same quarter last year. However, operating cash flow and free cash flow were weaker than both comparison periods, with free cash flow margin dropping below previous levels.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$791.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$669.0M
Cash generated by operations before capital spending.
CapEx
$122.0M
Capital spending and related asset purchases.
FCF margin
-15.3%
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 | $4.4B | $2.0B | $74.0M | $1.9B | 44.4% |
| 2025-06-30 | $3.3B | $1.5B | $119.0M | $1.4B | 42.4% |
| 2025-09-30 | $3.7B | -$130.0M | $104.0M | -$234.0M | -6.3% |
| 2025-12-31 | $5.2B | -$669.0M | $122.0M | -$791.0M | -15.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -320.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | 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 decline
Operating cash flow turned substantially more negative in the current quarter, representing the primary factor behind the larger free cash outflow. This occurred even though revenue was higher than the prior quarter.
The weakened operating cash flow drove free cash flow and margin to worse levels, reflecting reduced cash efficiency from operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite a higher revenue level, operating cash flow worsened significantly, leading to a much larger free cash outflow and a more negative margin. The conversion from revenue to cash declined substantially.
Revenue improved compared to the prior quarter and remained stable versus the same quarter last year. However, operating cash flow and free cash flow were weaker than both comparison periods, with free cash flow margin dropping below previous levels.
Monitor operating cash flow trends, as the deeper negative reading this quarter may signal a shift in cash generation dynamics.