Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative this quarter, driven by operating cash flow that was lower than capital expenditure. Revenue was higher than the prior quarter but slightly lower than a year ago.
- Operating cash flow was lower than capital expenditure, resulting in negative free cash flow and a negative free cash flow margin. Revenue was higher than the prior quarter, but the conversion into operating cash flow weakened.
- Compared to the prior quarter, operating cash flow and free cash flow were both lower, and free cash flow margin turned from positive to negative. Compared to the same quarter a year ago, operating cash flow improved from negative to positive, and free cash flow was less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$289.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$234.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$401.0M
Cash generated by operations before capital spending.
CapEx
$635.0M
Capital spending and related asset purchases.
FCF margin
-3.2%
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 | $6.9B | $113.0M | $517.0M | -$404.0M | -5.9% |
| 2024-12-31 | $6.9B | $476.0M | $460.0M | $16.0M | 0.2% |
| 2025-03-31 | $6.4B | $860.0M | $527.0M | $333.0M | 5.2% |
| 2025-06-30 | $7.2B | $401.0M | $635.0M | -$234.0M | -3.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -109.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.8% | 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.
Capital expenditure exceeding operating cash flow
Capital expenditure was higher than operating cash flow, which was the primary factor behind the negative free cash flow. This relationship was reversed in the prior quarter when operating cash flow exceeded capital expenditure.
The gap between capital expenditure and operating cash flow drove free cash flow from positive to negative this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than capital expenditure, resulting in negative free cash flow and a negative free cash flow margin. Revenue was higher than the prior quarter, but the conversion into operating cash flow weakened.
Compared to the prior quarter, operating cash flow and free cash flow were both lower, and free cash flow margin turned from positive to negative. Compared to the same quarter a year ago, operating cash flow improved from negative to positive, and free cash flow was less negative.
Monitor whether operating cash flow can sustain its improvement relative to a year ago while capital expenditure remains elevated.