Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company generated negative free cash flow this quarter, a significant weakening from the prior quarter and a further decline from the same quarter last year. Cash conversion was poor as operating cash flow turned negative despite lower capital expenditure.
- Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow was negative, a sharp reversal from the prior quarter's positive level and worse than the year-ago quarter's negative level. Capital expenditure was lower than the prior quarter but similar to the year-ago quarter. Consequently, free cash flow was negative and free cash flow margin weakened substantially.
- Compared to the immediately preceding quarter, free cash flow turned from positive to negative, driven by a large swing in operating cash flow. Versus the same quarter one year earlier, free cash flow was more negative, with operating cash flow declining further while revenue also decreased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.6B
Cash generated by operations before capital spending.
CapEx
$256.0M
Capital spending and related asset purchases.
FCF margin
-19.2%
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 | $10.2B | $1.4B | $320.0M | $1.1B | 10.8% |
| 2024-09-30 | $10.0B | $1.1B | $361.0M | $730.0M | 7.3% |
| 2024-12-31 | $10.7B | $2.6B | $816.0M | $1.8B | 16.5% |
| 2025-03-31 | $9.5B | -$1.6B | $256.0M | -$1.8B | -19.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -378.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.1B | 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 swing
Operating cash flow moved from a positive level in the prior quarter to a negative level this quarter, and also worsened compared to the year-ago quarter. This was the primary factor behind the negative free cash flow.
The negative operating cash flow more than offset the reduction in capital expenditure, resulting in a significantly weaker free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow was negative, a sharp reversal from the prior quarter's positive level and worse than the year-ago quarter's negative level. Capital expenditure was lower than the prior quarter but similar to the year-ago quarter. Consequently, free cash flow was negative and free cash flow margin weakened substantially.
Compared to the immediately preceding quarter, free cash flow turned from positive to negative, driven by a large swing in operating cash flow. Versus the same quarter one year earlier, free cash flow was more negative, with operating cash flow declining further while revenue also decreased.
Monitor the trajectory of operating cash flow, as it swung from positive to negative and remains below year-ago levels.