Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened sharply as operating cash flow turned negative. Free cash flow also became negative, reflecting a significant decline from both the prior quarter and the same quarter last year.
- Revenue was lower than both the preceding quarter and the year-ago quarter. Operating cash flow was negative, while capital expenditure decreased from the prior quarter but increased from a year earlier. The combination resulted in negative free cash flow and a negative free cash flow margin.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow both turned from positive to negative, and revenue was slightly lower. Versus the same quarter one year earlier, operating cash flow and free cash flow also shifted from positive to negative, while revenue was modestly lower and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$727.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$64.0M
Cash generated by operations before capital spending.
CapEx
$663.0M
Capital spending and related asset purchases.
FCF margin
-2.3%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $37.9B | $3.2B | $487.0M | $2.8B | 7.3% |
| 2024-09-30 | $35.1B | $1.7B | $651.0M | $1.0B | 2.9% |
| 2024-12-31 | $33.1B | $2.2B | $810.0M | $1.4B | 4.2% |
| 2025-03-31 | $31.5B | -$64.0M | $663.0M | -$727.0M | -2.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 982.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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 decline
Operating cash flow turned negative, driven by lower operating results and an unfavorable change in working capital, as described in the filing.
This decline was the primary factor behind negative free cash flow, even as capital expenditure was reduced from the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the preceding quarter and the year-ago quarter. Operating cash flow was negative, while capital expenditure decreased from the prior quarter but increased from a year earlier. The combination resulted in negative free cash flow and a negative free cash flow margin.
Compared with the immediately preceding quarter, operating cash flow and free cash flow both turned from positive to negative, and revenue was slightly lower. Versus the same quarter one year earlier, operating cash flow and free cash flow also shifted from positive to negative, while revenue was modestly lower and capital expenditure was higher.
Monitor working capital changes, which the filing notes were influenced by energy commodity price movements.