Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the prior quarter and was slightly higher than a year ago. Operating cash flow turned negative, leading to a larger free cash flow deficit and a weakened margin.
- Revenue of three billion dollars did not convert into positive operating cash flow, which was negative, and capital expenditure remained substantial, resulting in negative free cash flow and a negative margin.
- Compared to the prior quarter, revenue was lower, operating cash flow shifted from positive to negative, and free cash flow was more negative. Versus the same quarter last year, revenue was slightly higher, but operating cash flow weakened from positive to negative, and free cash flow worsened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$534.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$405.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$56.1M
Cash generated by operations before capital spending.
CapEx
$349.6M
Capital spending and related asset purchases.
FCF margin
-13.6%
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 | $2.6B | $42.9M | $340.8M | -$297.9M | -11.4% |
| 2025-06-30 | $3.0B | $609.5M | $304.6M | $304.9M | 10.1% |
| 2025-09-30 | $3.5B | $228.5M | $364.4M | -$135.9M | -3.9% |
| 2025-12-31 | $3.0B | -$56.1M | $349.6M | -$405.7M | -13.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 78.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.8% | 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 Turned Negative
Operating cash flow was negative this quarter, a sharp reversal from positive levels in both the prior quarter and the same quarter last year. This was the strongest observable driver of the free cash flow decline.
The negative operating cash flow directly caused free cash flow to be more negative despite capital expenditure being lower than the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue of three billion dollars did not convert into positive operating cash flow, which was negative, and capital expenditure remained substantial, resulting in negative free cash flow and a negative margin.
Compared to the prior quarter, revenue was lower, operating cash flow shifted from positive to negative, and free cash flow was more negative. Versus the same quarter last year, revenue was slightly higher, but operating cash flow weakened from positive to negative, and free cash flow worsened.
Monitor whether operating cash flow can return to positive levels given the current revenue base.