Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased versus the prior quarter, yet free cash flow remained deeply negative with an improved margin. Operating cash outflow narrowed from both the prior quarter and the year-ago period.
- Revenue rose while operating cash flow remained a large outflow, producing a negative free cash flow margin that narrowed from the prior quarter. Capital expenditure was minimal, so the cash conversion was primarily driven by the operating cash deficit.
- Compared to the preceding quarter, revenue was higher, operating cash outflow was lower, and capital expenditure was lower, resulting in a smaller free cash outflow and an improved free cash flow margin. Versus the same quarter one year earlier, revenue was lower, but operating cash outflow and capital expenditure were also lower, yielding a smaller free cash outflow though a weaker margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$3.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$922.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$919.0M
Cash generated by operations before capital spending.
CapEx
$3.0M
Capital spending and related asset purchases.
FCF margin
-649.3%
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 | $1.9B | -$1.6B | $151.0M | -$1.7B | -92.2% |
| 2024-12-31 | $966.0M | $825.0M | $522.0M | $303.0M | 31.4% |
| 2025-03-31 | $108.0M | -$1.0B | $117.0M | -$1.2B | -1068.5% |
| 2025-06-30 | $142.0M | -$919.0M | $3.0M | -$922.0M | -649.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 111.8% | 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.
Narrowed operating cash outflow
Operating cash outflow decreased compared to both the previous quarter and the year-ago quarter, reducing the overall cash burn. This was supported by a revenue increase from the prior quarter and lower capital spending.
The reduced operating cash outflow directly lessened the free cash deficit and improved the free cash flow margin sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow remained a large outflow, producing a negative free cash flow margin that narrowed from the prior quarter. Capital expenditure was minimal, so the cash conversion was primarily driven by the operating cash deficit.
Compared to the preceding quarter, revenue was higher, operating cash outflow was lower, and capital expenditure was lower, resulting in a smaller free cash outflow and an improved free cash flow margin. Versus the same quarter one year earlier, revenue was lower, but operating cash outflow and capital expenditure were also lower, yielding a smaller free cash outflow though a weaker margin.
Monitor the trajectory of operating cash flow, as it remains the largest driver of negative free cash flow despite improvement in revenue.