Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared with both the prior quarter and the same quarter last year. Free cash flow turned negative this quarter, a decline from the prior quarter's positive level and a smaller negative compared with the year-ago quarter.
- Operating cash flow was negative, and after capital expenditure, free cash flow was also negative, resulting in a negative free cash flow margin. This contrasts with the prior quarter's positive operating cash flow and free cash flow.
- Compared with the immediately preceding quarter, revenue was higher, but operating cash flow and free cash flow were lower and turned negative. Compared with the same quarter one year earlier, revenue was higher, and the negative free cash flow was less severe.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$918.0M
Cash generated by operations before capital spending.
CapEx
$189.0M
Capital spending and related asset purchases.
FCF margin
-1.1%
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 | $93.7B | $2.1B | $75.0M | $2.0B | 2.2% |
| 2024-12-31 | $95.3B | -$2.4B | $126.0M | -$2.5B | -2.6% |
| 2025-03-31 | $90.8B | $7.7B | $169.0M | $7.6B | 8.3% |
| 2025-06-30 | $97.8B | -$918.0M | $189.0M | -$1.1B | -1.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -141.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.4B | 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
Operating cash flow was negative this quarter, a significant shift from the positive level in the prior quarter. This is the strongest observable driver of the negative free cash flow.
The negative operating cash flow directly caused free cash flow to be negative despite capital expenditure being relatively stable.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, and after capital expenditure, free cash flow was also negative, resulting in a negative free cash flow margin. This contrasts with the prior quarter's positive operating cash flow and free cash flow.
Compared with the immediately preceding quarter, revenue was higher, but operating cash flow and free cash flow were lower and turned negative. Compared with the same quarter one year earlier, revenue was higher, and the negative free cash flow was less severe.
Monitor whether operating cash flow returns to positive levels in the coming quarter.