Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased sequentially and year-over-year, but free cash flow turned more negative due to a decline in operating cash flow and elevated capital expenditure. The negative free cash flow margin widened from both the prior quarter and the same quarter last year.
- Operating cash flow improved from a year earlier but weakened from the prior quarter. Capital expenditure decreased from the prior quarter but remained elevated compared to the prior year, resulting in a more negative free cash flow and a weaker margin.
- Compared to the prior quarter, revenue grew while operating cash flow declined, and capital expenditure slightly decreased, causing free cash flow to be more negative. Year-over-year, revenue and operating cash flow both increased, but capital expenditure rose more sharply, widening the free cash flow deficit.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$256.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$267.6M
Cash generated by operations before capital spending.
CapEx
$523.9M
Capital spending and related asset purchases.
FCF margin
-14.6%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $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% |
| 2025-09-30 | $1.8B | $267.6M | $523.9M | -$256.3M | -14.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -297.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 29.9% | 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.
Project Matterhorn Spending
The quarterly report states that the company is executing a transformation program that will run through the end of the fiscal year, with substantial restructuring and transformation costs incurred to date.
The continued investment under this program is a significant factor contributing to the negative free cash flow in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved from a year earlier but weakened from the prior quarter. Capital expenditure decreased from the prior quarter but remained elevated compared to the prior year, resulting in a more negative free cash flow and a weaker margin.
Compared to the prior quarter, revenue grew while operating cash flow declined, and capital expenditure slightly decreased, causing free cash flow to be more negative. Year-over-year, revenue and operating cash flow both increased, but capital expenditure rose more sharply, widening the free cash flow deficit.
Monitor the trend of capital expenditure relative to operating cash flow, as continued high investment could further pressure free cash flow.