Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow increased sharply compared to the prior quarter, while capital expenditure decreased, resulting in a significantly improved free cash flow. Free cash flow remained negative but narrowed from both the previous quarter and the same quarter one year ago.
- Revenue was stable from the prior quarter and higher than a year earlier. Operating cash flow improved markedly relative to the prior quarter and was slightly higher than the year-ago period. Capital expenditure was lower than both comparisons, leading to a free cash flow margin that strengthened from a deeply negative position.
- Compared to the prior quarter, free cash flow improved substantially as operating cash flow rose while capital expenditure edged lower. Versus the same quarter a year ago, free cash flow also improved, driven by higher operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$931.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$16.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$500.0M
Cash generated by operations before capital spending.
CapEx
$516.2M
Capital spending and related asset purchases.
FCF margin
-0.9%
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 | $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% |
| 2025-12-31 | $1.8B | $500.0M | $516.2M | -$16.2M | -0.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -17.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 28.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improvement in Operating Cash Flow
The current quarter's operating cash flow was substantially higher than the prior quarter and slightly above the year-ago quarter. Coupled with a reduction in capital expenditure, this drove a notable improvement in free cash flow compared to both periods.
Free cash flow, while still negative, narrowed by a large margin from the prior quarter and also improved relative to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable from the prior quarter and higher than a year earlier. Operating cash flow improved markedly relative to the prior quarter and was slightly higher than the year-ago period. Capital expenditure was lower than both comparisons, leading to a free cash flow margin that strengthened from a deeply negative position.
Compared to the prior quarter, free cash flow improved substantially as operating cash flow rose while capital expenditure edged lower. Versus the same quarter a year ago, free cash flow also improved, driven by higher operating cash flow and lower capital expenditure.
Monitor whether capital expenditure continues to exceed operating cash flow, as this pattern has led to negative free cash flow in the current period.