Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue in the current quarter rose compared to both the prior quarter and the same period last year. Operating cash flow improved sequentially but was slightly lower than a year earlier, while free cash flow remained negative with a significantly narrower deficit than the preceding quarter.
- Higher revenue supported an increase in operating cash flow relative to the prior quarter. Capital expenditure declined from the previous quarter, leading to an improved but still negative free cash flow margin.
- Compared with the immediately preceding quarter, free cash flow improved as operating cash flow rose and capital expenditure fell. Versus the same quarter a year ago, free cash flow weakened because capital expenditure increased more than operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$988.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$181.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$375.1M
Cash generated by operations before capital spending.
CapEx
$556.8M
Capital spending and related asset purchases.
FCF margin
-10.6%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $1.6B | $252.9M | $396.1M | -$143.2M | -9.2% |
| 2024-12-31 | $1.6B | $431.6M | $617.6M | -$186.0M | -11.8% |
| 2025-03-31 | $1.6B | $197.3M | $674.8M | -$477.5M | -30.0% |
| 2025-06-30 | $1.7B | $375.1M | $556.8M | -$181.6M | -10.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 419.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 32.5% | 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.
Transformation Investment Impact
The company continues to implement a global transformation program involving restructuring costs and capital investments aimed at accelerating growth. These outlays have weighed on free cash flow, though spending is expected to moderate as the program approaches its conclusion within the current fiscal year.
The reduction in capital expenditure from the prior quarter was the primary observable factor behind the sequential improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Higher revenue supported an increase in operating cash flow relative to the prior quarter. Capital expenditure declined from the previous quarter, leading to an improved but still negative free cash flow margin.
Compared with the immediately preceding quarter, free cash flow improved as operating cash flow rose and capital expenditure fell. Versus the same quarter a year ago, free cash flow weakened because capital expenditure increased more than operating cash flow.
Monitor the pace of capital expenditure and the completion of the ongoing global transformation program, which continues to influence cash outflows.