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 same quarter last year. However, operating cash flow turned negative from positive sequentially, and free cash flow remained negative, though improved from a year ago.
- Despite higher revenue, operating cash flow was negative, and capital expenditure increased, resulting in a negative free cash flow margin. The margin weakened from the prior quarter but improved compared to the same quarter last year.
- Sequentially, revenue rose while operating cash flow declined from positive to negative, leading to a larger free cash flow deficit. Year over year, revenue and operating cash flow both improved, and the free cash flow margin was less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$371.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$95.7M
Cash generated by operations before capital spending.
CapEx
$275.6M
Capital spending and related asset purchases.
FCF margin
-4.4%
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 | $5.7B | $1.0B | $154.9M | $890.2M | 15.7% |
| 2025-03-31 | $3.4B | $1.3B | $170.8M | $1.2B | 34.0% |
| 2025-06-30 | $7.0B | $223.5M | $263.4M | -$39.9M | -0.6% |
| 2025-09-30 | $8.5B | -$95.7M | $275.6M | -$371.3M | -4.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -86.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | 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.
Revenue growth
Revenue increased both sequentially and year over year, yet operating cash flow did not follow suit, turning negative sequentially.
The higher revenue did not translate into positive free cash flow, highlighting a gap between top-line growth and cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow was negative, and capital expenditure increased, resulting in a negative free cash flow margin. The margin weakened from the prior quarter but improved compared to the same quarter last year.
Sequentially, revenue rose while operating cash flow declined from positive to negative, leading to a larger free cash flow deficit. Year over year, revenue and operating cash flow both improved, and the free cash flow margin was less negative.
Monitor the trajectory of operating cash flow, as it turned negative in the current quarter despite higher revenue.