Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow was slightly negative, a substantial improvement from the prior quarter but a decline from the positive level a year earlier. Revenue increased compared to both periods, while operating cash flow recovered from the prior quarter but remained below the year-ago level.
- Revenue was higher than both the prior quarter and the same quarter last year. Operating cash flow increased sharply from the prior quarter but was lower than a year ago. Capital expenditure decreased from the prior quarter but increased from a year ago. As a result, free cash flow and its margin improved significantly from the prior quarter but turned negative from positive a year earlier.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow moving from a large deficit to near breakeven. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow was lower and capital expenditure was higher, leading to a weakened free cash flow position.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$80.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.9B
Cash generated by operations before capital spending.
CapEx
$2.9B
Capital spending and related asset purchases.
FCF margin
-1.3%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $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% |
| 2025-09-30 | $6.3B | $2.9B | $2.9B | -$80.0M | -1.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -9.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 46.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$57.9B | 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 recovery
The strongest observable driver is the recovery in operating cash flow from the prior quarter. This improvement was the primary factor behind the significant reduction in the free cash flow deficit.
The higher operating cash flow substantially narrowed the free cash flow gap, though capital expenditure remained a significant use of cash.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the same quarter last year. Operating cash flow increased sharply from the prior quarter but was lower than a year ago. Capital expenditure decreased from the prior quarter but increased from a year ago. As a result, free cash flow and its margin improved significantly from the prior quarter but turned negative from positive a year earlier.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow moving from a large deficit to near breakeven. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow was lower and capital expenditure was higher, leading to a weakened free cash flow position.
Monitor the level of capital expenditure relative to operating cash flow, as it remains elevated compared to the year-ago period.