Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the year-ago period. However, free cash flow turned more negative as capital expenditure rose substantially, resulting in a weakened cash conversion.
- Operating cash flow improved slightly from the prior quarter but was lower than the year-ago period. Combined with a significant increase in capital expenditure, free cash flow and its margin turned more negative.
- Compared to the prior quarter, revenue and operating cash flow were higher, but capital expenditure increased more, leading to a larger free cash flow deficit. Versus the same quarter last year, revenue was higher while operating cash flow was lower and capital expenditure was higher, reversing a positive free cash flow into a negative one.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$856.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$564.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$295.0M
Cash generated by operations before capital spending.
CapEx
$859.0M
Capital spending and related asset purchases.
FCF margin
-7.6%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $7.4B | $295.0M | $859.0M | -$564.0M | -7.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -174.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.7B | 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 increase
Capital expenditure was higher than both the prior quarter and the year-ago quarter, outpacing the growth in operating cash flow.
This drove the free cash flow deeper into negative territory.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved slightly from the prior quarter but was lower than the year-ago period. Combined with a significant increase in capital expenditure, free cash flow and its margin turned more negative.
Compared to the prior quarter, revenue and operating cash flow were higher, but capital expenditure increased more, leading to a larger free cash flow deficit. Versus the same quarter last year, revenue was higher while operating cash flow was lower and capital expenditure was higher, reversing a positive free cash flow into a negative one.
Monitor the trend of capital expenditure relative to operating cash flow, as the gap widened considerably.