Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow was negative as capital expenditure exceeded operating cash flow. Compared to the prior quarter, free cash flow weakened from positive to negative, while compared to the same quarter last year, the deficit narrowed.
- Operating cash flow was positive but insufficient to cover capital expenditure, resulting in a negative free cash flow margin. The conversion of revenue into free cash flow remained negative.
- Sequentially, revenue and operating cash flow were lower, while capital expenditure was slightly higher, causing free cash flow to turn negative. Year over year, revenue and operating cash flow were higher, and capital expenditure was also higher, but free cash flow improved as the deficit decreased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$628.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$162.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$495.4M
Cash generated by operations before capital spending.
CapEx
$658.2M
Capital spending and related asset purchases.
FCF margin
-13.1%
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 | $1.0B | $340.0M | $634.7M | -$294.7M | -28.2% |
| 2024-12-31 | $5.3B | $539.8M | $760.0M | -$220.2M | -4.2% |
| 2025-03-31 | $2.1B | $686.4M | $637.3M | $49.1M | 2.3% |
| 2025-06-30 | $1.2B | $495.4M | $658.2M | -$162.8M | -13.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -159.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 52.8% | 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 decline
Operating cash flow decreased from the prior quarter while capital expenditure remained elevated, leading to negative free cash flow.
The shift from positive to negative free cash flow highlights the sensitivity of cash generation to quarterly revenue and operating cash flow variations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was positive but insufficient to cover capital expenditure, resulting in a negative free cash flow margin. The conversion of revenue into free cash flow remained negative.
Sequentially, revenue and operating cash flow were lower, while capital expenditure was slightly higher, causing free cash flow to turn negative. Year over year, revenue and operating cash flow were higher, and capital expenditure was also higher, but free cash flow improved as the deficit decreased.
Monitor the relationship between capital expenditure and operating cash flow, as the gap determines free cash flow direction.