Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were lower than the previous quarter, while capital expenditure decreased. Free cash flow was negative but improved compared to the prior quarter; however, it weakened significantly from the same quarter last year.
- Operating cash flow covered a large portion of capital expenditure, resulting in a negative free cash flow. The free cash flow margin was negative, reflecting that capital outflows exceeded operating cash generation.
- Compared to the immediately preceding quarter, revenue and operating cash flow were lower, capital expenditure was lower, and free cash flow improved from a larger negative to a smaller negative. Versus the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was substantially higher, and free cash flow turned from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$5.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$362.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$8.1B
Cash generated by operations before capital spending.
CapEx
$8.5B
Capital spending and related asset purchases.
FCF margin
-2.4%
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 |
|---|---|---|---|---|---|
| 2024-11-30 | $14.1B | $1.3B | $4.0B | -$2.7B | -19.0% |
| 2025-02-28 | $14.1B | $5.9B | $5.9B | $71.0M | 0.5% |
| 2025-05-31 | $15.9B | $6.2B | $9.1B | -$2.9B | -18.4% |
| 2025-08-31 | $14.9B | $8.1B | $8.5B | -$362.0M | -2.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -12.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 57.0% | 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.
Capital expenditure outflow
Capital expenditure remained elevated in absolute terms, significantly exceeding the level from the same quarter last year. The filing notes that working capital decreased primarily due to cash used for capital expenditures.
The high capital expenditure is the strongest observable driver of the negative free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow covered a large portion of capital expenditure, resulting in a negative free cash flow. The free cash flow margin was negative, reflecting that capital outflows exceeded operating cash generation.
Compared to the immediately preceding quarter, revenue and operating cash flow were lower, capital expenditure was lower, and free cash flow improved from a larger negative to a smaller negative. Versus the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was substantially higher, and free cash flow turned from positive to negative.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the elevated spending level continues to pressure free cash flow.