Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to both the prior quarter and the same quarter last year. Operating cash flow decreased sharply from the prior quarter, while capital expenditure increased, resulting in a negative free cash flow and a weakened free cash flow margin.
- Operating cash flow as a proportion of revenue declined significantly from the prior quarter, and capital expenditure rose, causing free cash flow to turn negative and the free cash flow margin to worsen.
- Compared to the prior quarter, operating cash flow was lower and capital expenditure was higher, flipping free cash flow from positive to negative and weakening the margin. Versus the same quarter last year, operating cash flow improved, but higher capital expenditure led to a more negative free cash flow and a weaker margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$2.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$3.1B
Capital spending and related asset purchases.
FCF margin
-34.0%
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 | $5.9B | $3.1B | $2.6B | $526.0M | 8.9% |
| 2024-12-31 | $6.6B | $1.9B | $2.8B | -$896.0M | -13.5% |
| 2025-03-31 | $6.0B | $2.8B | $2.6B | $213.0M | 3.6% |
| 2025-06-30 | $5.9B | $1.1B | $3.1B | -$2.0B | -34.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -365.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 52.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$57.2B | 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 same quarter last year, while revenue remained stable. This was the strongest observable driver of the negative free cash flow and margin decline.
Higher capital expenditure absorbed more cash, turning free cash flow negative despite improved operating cash flow year over year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue declined significantly from the prior quarter, and capital expenditure rose, causing free cash flow to turn negative and the free cash flow margin to worsen.
Compared to the prior quarter, operating cash flow was lower and capital expenditure was higher, flipping free cash flow from positive to negative and weakening the margin. Versus the same quarter last year, operating cash flow improved, but higher capital expenditure led to a more negative free cash flow and a weaker margin.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the gap widened significantly this quarter.