Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow fell sharply as operating cash flow declined while capital expenditure increased. The resulting free cash flow margin weakened considerably compared with both the prior quarter and the same quarter last year.
- Revenue was slightly lower than the prior quarter and the year-ago period, but operating cash flow contracted more steeply. Higher capital expenditure combined with lower operating cash flow produced a free cash flow margin that was lower than both comparison periods.
- Compared with the immediately preceding quarter, revenue was slightly lower and operating cash flow was lower, while capital expenditure was higher, resulting in a free cash flow that was lower. Versus the same quarter one year earlier, revenue was lower, operating cash flow was lower, and free cash flow was lower, with capital expenditure higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$355.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$32.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$164.0M
Cash generated by operations before capital spending.
CapEx
$132.0M
Capital spending and related asset purchases.
FCF margin
1.2%
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 | $2.8B | $389.0M | $160.0M | $229.0M | 8.3% |
| 2025-03-31 | $2.8B | $127.0M | $179.0M | -$52.0M | -1.8% |
| 2025-06-30 | $2.8B | $241.0M | $95.0M | $146.0M | 5.3% |
| 2025-09-30 | $2.7B | $164.0M | $132.0M | $32.0M | 1.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 80.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Higher capital expenditure
Capital expenditure rose compared with both the prior quarter and the year-ago quarter. This increase, set against lower revenue and operating cash flow, was the strongest observable contributor to the reduction in free cash flow.
The combination of higher capital spending and lower operating cash flow weakened free cash flow generation this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter and the year-ago period, but operating cash flow contracted more steeply. Higher capital expenditure combined with lower operating cash flow produced a free cash flow margin that was lower than both comparison periods.
Compared with the immediately preceding quarter, revenue was slightly lower and operating cash flow was lower, while capital expenditure was higher, resulting in a free cash flow that was lower. Versus the same quarter one year earlier, revenue was lower, operating cash flow was lower, and free cash flow was lower, with capital expenditure higher.
Monitor capital expenditure levels relative to operating cash flow, given that higher spending coincided with a material decline in free cash flow.