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 while operating cash flow improved, but a significant increase in capital expenditure drove free cash flow negative. Compared to the same quarter last year, revenue and operating cash flow were higher, yet free cash flow remained negative due to elevated capital spending.
- Operating cash flow as a share of revenue improved from the prior quarter, but the conversion was more than offset by capital expenditure, resulting in a negative free cash flow margin.
- Compared to the prior quarter, revenue was lower while operating cash flow was higher, but capital expenditure increased more sharply, weakening free cash flow. Versus the same quarter last year, revenue and operating cash flow were higher, and free cash flow improved from a larger negative to a smaller negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$606.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$113.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.9B
Cash generated by operations before capital spending.
CapEx
$4.1B
Capital spending and related asset purchases.
FCF margin
-1.4%
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 |
|---|---|---|---|---|---|
| 2024-05-30 | $6.8B | $2.5B | $2.1B | $396.0M | 5.8% |
| 2024-08-29 | $7.8B | $3.4B | $3.1B | $285.0M | 3.7% |
| 2024-11-28 | $8.7B | $3.2B | $3.2B | $38.0M | 0.4% |
| 2025-02-27 | $8.1B | $3.9B | $4.1B | -$113.0M | -1.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -7.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 50.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Surge
Capital expenditure increased substantially from both the prior quarter and the year-ago quarter, outpacing the growth in operating cash flow and driving free cash flow negative.
The elevated capital spending was the strongest observable factor turning free cash flow negative despite higher operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue improved from the prior quarter, but the conversion was more than offset by capital expenditure, resulting in a negative free cash flow margin.
Compared to the prior quarter, revenue was lower while operating cash flow was higher, but capital expenditure increased more sharply, weakening free cash flow. Versus the same quarter last year, revenue and operating cash flow were higher, and free cash flow improved from a larger negative to a smaller negative.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the gap widened this quarter.