Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened sharply this quarter as operating cash flow declined while capital expenditure rose, resulting in a much lower free cash flow margin. Revenue also decreased from the prior quarter, though it was slightly higher than the same quarter last year.
- Cash conversion from revenue to free cash flow was strained: operating cash flow as a proportion of revenue was lower than both the prior quarter and the year-ago quarter, and capital expenditure consumed a larger share of operating cash flow, leaving free cash flow and its margin substantially reduced.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased, while capital expenditure increased. Versus the same quarter one year earlier, revenue was slightly higher, but operating cash flow, free cash flow, and free cash flow margin were all lower, and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$73.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$451.0M
Cash generated by operations before capital spending.
CapEx
$378.0M
Capital spending and related asset purchases.
FCF margin
1.1%
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 | $7.1B | $31.0M | $114.0M | -$83.0M | -1.2% |
| 2024-12-31 | $6.8B | $952.0M | $186.0M | $766.0M | 11.3% |
| 2025-03-31 | $8.5B | $855.0M | $217.0M | $638.0M | 7.5% |
| 2025-06-30 | $6.7B | $451.0M | $378.0M | $73.0M | 1.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -70.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.8B | 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 Increase
Capital expenditure rose compared to both the prior quarter and the year-ago quarter, while operating cash flow declined. This combination was the strongest observable factor behind the drop in free cash flow and free cash flow margin.
Higher capital expenditure, alongside lower operating cash flow, directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion from revenue to free cash flow was strained: operating cash flow as a proportion of revenue was lower than both the prior quarter and the year-ago quarter, and capital expenditure consumed a larger share of operating cash flow, leaving free cash flow and its margin substantially reduced.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased, while capital expenditure increased. Versus the same quarter one year earlier, revenue was slightly higher, but operating cash flow, free cash flow, and free cash flow margin were all lower, and capital expenditure was higher.
Monitor the trajectory of capital expenditure relative to operating cash flow, as its higher level this quarter absorbed a larger portion of cash generation.