Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned deeply negative this quarter, driven by a large operating cash outflow that far exceeded capital spending. Revenue was stable versus a year ago, but the cash conversion profile weakened sharply.
- Revenue was unchanged from a year earlier, yet operating cash flow swung from a large inflow to a large outflow, resulting in a negative free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter, but the operating cash deficit overwhelmed any benefit from reduced spending.
- Compared to the immediately preceding quarter, free cash flow worsened from a modest deficit to a much larger deficit, as operating cash flow became more negative while capital expenditure was slightly lower. Versus the same quarter one year earlier, free cash flow reversed from a positive figure to a negative figure, with operating cash flow shifting from an inflow to an outflow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$954.0M
Cash generated by operations before capital spending.
CapEx
$208.0M
Capital spending and related asset purchases.
FCF margin
-18.3%
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 | $6.3B | -$1.8B | $246.0M | -$2.0B | -32.3% |
| 2024-12-31 | $6.0B | $1.8B | $291.0M | $1.5B | 25.4% |
| 2025-03-31 | $6.0B | -$79.0M | $236.0M | -$315.0M | -5.3% |
| 2025-06-30 | $6.3B | -$954.0M | $208.0M | -$1.2B | -18.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -160.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | 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.
Operating Cash Flow Swing
Operating cash flow moved from a positive inflow in the year-ago quarter and a small outflow in the prior quarter to a large outflow this quarter. This swing is the strongest observable driver of the free cash flow decline.
The large operating cash outflow directly caused free cash flow to become deeply negative despite lower capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from a year earlier, yet operating cash flow swung from a large inflow to a large outflow, resulting in a negative free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter, but the operating cash deficit overwhelmed any benefit from reduced spending.
Compared to the immediately preceding quarter, free cash flow worsened from a modest deficit to a much larger deficit, as operating cash flow became more negative while capital expenditure was slightly lower. Versus the same quarter one year earlier, free cash flow reversed from a positive figure to a negative figure, with operating cash flow shifting from an inflow to an outflow.
Monitor whether operating cash flow can return to positive territory in the coming quarter, as the current outflow is the primary factor behind the negative free cash flow.