Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow remained negative but improved compared to the same quarter a year earlier, driven by higher operating cash flow. However, relative to the preceding quarter, free cash flow weakened as operating cash flow decreased and capital expenditure increased.
- Revenue was stable versus the prior year but lower than the previous quarter. Operating cash flow improved year-over-year yet declined sequentially, while capital expenditure rose in both comparisons. Consequently, free cash flow was negative in all periods, with the margin weakening sequentially despite a slight year-over-year improvement.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all decreased, and the free cash flow margin turned more negative. Versus the same quarter one year earlier, revenue was stable, operating cash flow increased, and free cash flow improved slightly, though it remained negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$276.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$391.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$287.0M
Cash generated by operations before capital spending.
CapEx
$678.0M
Capital spending and related asset purchases.
FCF margin
-5.6%
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 | $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% |
| 2025-09-30 | $6.9B | $287.0M | $678.0M | -$391.0M | -5.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -724.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.8% | 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.
Decline in operating cash flow
Operating cash flow dropped from the prior quarter, reversing the year-over-year gain seen previously. This decline, combined with higher capital spending, led to a sequential deterioration in free cash flow.
If operating cash flow does not recover, free cash flow may remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior year but lower than the previous quarter. Operating cash flow improved year-over-year yet declined sequentially, while capital expenditure rose in both comparisons. Consequently, free cash flow was negative in all periods, with the margin weakening sequentially despite a slight year-over-year improvement.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all decreased, and the free cash flow margin turned more negative. Versus the same quarter one year earlier, revenue was stable, operating cash flow increased, and free cash flow improved slightly, though it remained negative.
Monitor whether operating cash flow can sustain its year-over-year improvement and cover rising capital expenditure in upcoming quarters.