Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative in the current quarter, with a narrower deficit compared to the prior quarter but a wider deficit versus the same quarter last year. Operating cash flow improved sequentially, while capital expenditure increased relative to both comparison periods.
- Revenue rose from the prior quarter and from a year ago, and operating cash flow increased sequentially, yet free cash flow remained negative due to capital expenditure exceeding operating cash flow. The free cash flow margin improved from the prior quarter but weakened compared to the same quarter last year.
- Compared to the prior quarter, revenue, operating cash flow, and capital expenditure were all higher, and the free cash flow deficit was smaller. Versus the same quarter a year ago, revenue and capital expenditure were higher, operating cash flow was higher, but the free cash flow deficit was larger.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
-$103.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$408.0M
Cash generated by operations before capital spending.
CapEx
$511.0M
Capital spending and related asset purchases.
FCF margin
-8.5%
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 | $976.0M | $254.0M | n/a | n/a | n/a |
| 2025-03-31 | $1.1B | $249.0M | $554.0M | -$305.0M | -27.0% |
| 2025-06-30 | $961.0M | $243.0M | $422.0M | -$179.0M | -18.6% |
| 2025-09-30 | $1.2B | $408.0M | $511.0M | -$103.0M | -8.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -36.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 42.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Growth
Capital expenditure increased from both the prior quarter and the same quarter last year, outpacing the growth in operating cash flow. This was the strongest observable driver of the negative free cash flow position.
Higher capital expenditure directly widened the free cash flow deficit compared to a year ago, despite improved operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose from the prior quarter and from a year ago, and operating cash flow increased sequentially, yet free cash flow remained negative due to capital expenditure exceeding operating cash flow. The free cash flow margin improved from the prior quarter but weakened compared to the same quarter last year.
Compared to the prior quarter, revenue, operating cash flow, and capital expenditure were all higher, and the free cash flow deficit was smaller. Versus the same quarter a year ago, revenue and capital expenditure were higher, operating cash flow was higher, but the free cash flow deficit was larger.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the gap widened year-over-year and remained a key factor in the negative free cash flow.