Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved year over year but declined sequentially, while capital expenditure remained elevated, resulting in negative free cash flow for the quarter. The free cash flow margin weakened slightly from the prior quarter but improved significantly compared to the same quarter last year.
- Revenue was stable sequentially and higher year over year. Operating cash flow was lower than the prior quarter but higher than a year ago. Capital expenditure was slightly lower than the prior quarter and slightly higher than a year ago. The combination produced a negative free cash flow and a negative free cash flow margin that was weaker than the prior quarter but stronger than the same quarter last year.
- Compared to the prior quarter, operating cash flow was lower and free cash flow was more negative, with a slightly weaker margin. Compared to the same quarter one year earlier, operating cash flow was higher and free cash flow was less negative, with a meaningfully improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$506.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$172.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$467.9M
Cash generated by operations before capital spending.
CapEx
$640.5M
Capital spending and related asset purchases.
FCF margin
-13.9%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $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% |
| 2025-09-30 | $1.2B | $467.9M | $640.5M | -$172.6M | -13.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -182.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 51.6% | 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.
Year-over-year operating cash flow improvement
Operating cash flow was higher than the same quarter last year, which reduced the negative free cash flow and improved the free cash flow margin compared to a year ago.
The stronger operating cash flow relative to a year ago was the primary factor behind the improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially and higher year over year. Operating cash flow was lower than the prior quarter but higher than a year ago. Capital expenditure was slightly lower than the prior quarter and slightly higher than a year ago. The combination produced a negative free cash flow and a negative free cash flow margin that was weaker than the prior quarter but stronger than the same quarter last year.
Compared to the prior quarter, operating cash flow was lower and free cash flow was more negative, with a slightly weaker margin. Compared to the same quarter one year earlier, operating cash flow was higher and free cash flow was less negative, with a meaningfully improved margin.
Monitor whether capital expenditure remains elevated relative to operating cash flow, as this directly drives the negative free cash flow.