Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned deeply negative in the current quarter, driven by a sharp swing in operating cash flow to negative while capital expenditure increased. Compared with both the prior quarter and the same quarter last year, cash conversion weakened significantly.
- Revenue was nearly flat versus the prior quarter and higher than a year ago, but operating cash flow shifted from positive to negative, and capital expenditure rose. The resulting free cash flow margin dropped from slightly positive in the prior quarter and from a less negative level a year ago to a more negative margin.
- Compared with the prior quarter, free cash flow worsened from positive to negative, while versus the same quarter last year the deficit widened. Operating cash flow and free cash flow margin both declined relative to both periods.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$375.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.7B
Cash generated by operations before capital spending.
CapEx
$202.0M
Capital spending and related asset purchases.
FCF margin
-5.7%
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 | $32.1B | $331.0M | $95.0M | $236.0M | 0.7% |
| 2025-06-30 | $32.4B | $1.3B | $114.0M | $1.2B | 3.6% |
| 2025-09-30 | $32.6B | $971.0M | $135.0M | $836.0M | 2.6% |
| 2025-12-31 | $32.5B | -$1.7B | $202.0M | -$1.9B | -5.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 232.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.2B | 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 Swing
The most observable driver of the quarter's free cash flow weakness was the sharp negative swing in operating cash flow, which fell from a positive figure in the prior quarter to a substantial negative figure, while capital expenditure also increased.
This drove free cash flow to a deep deficit and lowered the free cash flow margin significantly.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was nearly flat versus the prior quarter and higher than a year ago, but operating cash flow shifted from positive to negative, and capital expenditure rose. The resulting free cash flow margin dropped from slightly positive in the prior quarter and from a less negative level a year ago to a more negative margin.
Compared with the prior quarter, free cash flow worsened from positive to negative, while versus the same quarter last year the deficit widened. Operating cash flow and free cash flow margin both declined relative to both periods.
Monitor the trajectory of operating cash flow, which reversed from positive to a large negative figure in the current quarter.