Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the first quarter of fiscal 2025, cash conversion was deeply negative as a large operating cash outflow combined with sustained capital spending produced a substantial free cash flow deficit. The comparison with both the prior quarter and the year-ago period shows a significant weakening of cash generation.
- Revenue was lower than the quarter one year earlier but broadly stable versus the prior quarter. Operating cash flow turned deeply negative, and after capital expenditure the free cash flow margin worsened to a negative level, far below the positive margin of the preceding quarter and the less-negative margin of the year-ago quarter.
- Compared with the immediately preceding quarter, all cash-flow metrics weakened sharply: operating cash flow moved from positive to negative, free cash flow fell from a positive figure to a negative figure, and the margin declined from positive to negative. Versus the same quarter one year earlier, operating cash flow was lower, free cash flow was lower, and the margin was more deeply negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$579.0M
Cash generated by operations before capital spending.
CapEx
$483.0M
Capital spending and related asset purchases.
FCF margin
-13.8%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $8.7B | $1.3B | $484.0M | $864.0M | 10.0% |
| 2024-09-30 | $8.6B | $670.0M | $368.0M | $302.0M | 3.5% |
| 2024-12-31 | $7.8B | $1.9B | $504.0M | $1.4B | 18.1% |
| 2025-03-31 | $7.7B | -$579.0M | $483.0M | -$1.1B | -13.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -600.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.3% | 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.
Negative Operating Cash Flow
The strongest observable driver this quarter was the large negative operating cash flow, which reversed from a positive figure in the prior quarter and was lower than the negative figure in the same quarter last year. This directly drove the free cash flow deficit.
The sharp swing in operating cash flow was the primary reason free cash flow turned deeply negative this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the quarter one year earlier but broadly stable versus the prior quarter. Operating cash flow turned deeply negative, and after capital expenditure the free cash flow margin worsened to a negative level, far below the positive margin of the preceding quarter and the less-negative margin of the year-ago quarter.
Compared with the immediately preceding quarter, all cash-flow metrics weakened sharply: operating cash flow moved from positive to negative, free cash flow fell from a positive figure to a negative figure, and the margin declined from positive to negative. Versus the same quarter one year earlier, operating cash flow was lower, free cash flow was lower, and the margin was more deeply negative.
Monitor whether future operating cash flows recover from the current negative level, as the filing notes that cash from operations could be affected by factors beyond the company's control.