Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative in the current quarter, an improvement from the prior quarter but a decline from the same quarter last year. Revenue increased compared to both periods, while operating cash flow improved sequentially but remained significantly lower than a year ago.
- Revenue rose from the prior quarter, and operating cash flow increased, but capital expenditure also grew, resulting in negative free cash flow. The free cash flow margin improved from the prior quarter but was lower than the year-ago quarter.
- Compared to the prior quarter, free cash flow and margin improved, driven by higher operating cash flow. Versus the same quarter last year, free cash flow turned negative and margin weakened, as operating cash flow was lower despite higher revenue and capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$385.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$222.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$732.0M
Cash generated by operations before capital spending.
CapEx
$954.0M
Capital spending and related asset purchases.
FCF margin
-2.6%
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 |
|---|---|---|---|---|---|
| 2024-09-28 | $7.4B | $1.3B | $823.0M | $478.0M | 6.4% |
| 2024-12-31 | $7.1B | $733.0M | $879.0M | -$146.0M | -2.1% |
| 2025-04-05 | $7.8B | $364.0M | $859.0M | -$495.0M | -6.3% |
| 2025-07-05 | $8.5B | $732.0M | $954.0M | -$222.0M | -2.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -36.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.3% | 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 from year ago
Operating cash flow in the current quarter was lower than the same quarter last year, despite higher revenue. The filing notes that operating cash flow for the first half of the year decreased compared to the prior year, primarily due to a decrease in certain items.
If operating cash flow does not recover, free cash flow may remain negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose from the prior quarter, and operating cash flow increased, but capital expenditure also grew, resulting in negative free cash flow. The free cash flow margin improved from the prior quarter but was lower than the year-ago quarter.
Compared to the prior quarter, free cash flow and margin improved, driven by higher operating cash flow. Versus the same quarter last year, free cash flow turned negative and margin weakened, as operating cash flow was lower despite higher revenue and capital expenditure.
The relationship between capital expenditure and operating cash flow, as capital spending has exceeded operating cash flow in the current and prior quarter.