Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to prior quarters, but operating cash flow declined sharply, leading to negative free cash flow. The company's cash conversion weakened significantly from both the preceding quarter and the same quarter last year.
- Revenue remained similar to the prior quarter and the year-ago quarter. Operating cash flow fell markedly, while capital expenditure decreased moderately. The decline in operating cash flow more than offset the lower capital spending, resulting in negative free cash flow and a negative margin.
- Compared to the immediately preceding quarter, free cash flow turned from positive to negative, driven by a much lower operating cash flow. Relative to the same quarter one year earlier, free cash flow also weakened substantially, reflecting a similar decline in operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$150.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$201.0M
Cash generated by operations before capital spending.
CapEx
$351.0M
Capital spending and related asset purchases.
FCF margin
-0.8%
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 |
|---|---|---|---|---|---|
| 2024-09-29 | $17.1B | $2.4B | $355.0M | $2.1B | 12.2% |
| 2024-12-31 | $18.6B | $1.0B | $582.0M | $441.0M | 2.4% |
| 2025-03-30 | $18.0B | $1.4B | $454.0M | $955.0M | 5.3% |
| 2025-06-29 | $18.2B | $201.0M | $351.0M | -$150.0M | -0.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -43.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$20.3B | 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 Decline
Operating cash flow decreased sharply compared to both the prior quarter and the year-ago quarter, while revenue was relatively stable. The filing context indicates that costs incurred in advance of government appropriations can negatively affect cash flow.
The sharp decline in operating cash flow drove free cash flow into negative territory, despite lower capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained similar to the prior quarter and the year-ago quarter. Operating cash flow fell markedly, while capital expenditure decreased moderately. The decline in operating cash flow more than offset the lower capital spending, resulting in negative free cash flow and a negative margin.
Compared to the immediately preceding quarter, free cash flow turned from positive to negative, driven by a much lower operating cash flow. Relative to the same quarter one year earlier, free cash flow also weakened substantially, reflecting a similar decline in operating cash flow.
Monitor the level of operating cash flow, as it is the primary source of liquidity and has shown a significant decline.