Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative and weakened versus both the prior quarter and the same quarter last year, driven by higher capital expenditure relative to operating cash flow. Operating cash flow improved year over year but declined sequentially, while revenue increased compared to both periods.
- Revenue rose from both the prior quarter and the year-ago quarter, yet free cash flow margin turned more negative as capital expenditure exceeded operating cash flow. Operating cash flow was higher than a year earlier but lower than the preceding quarter, resulting in a cash conversion gap that widened sequentially.
- Compared to the prior quarter, free cash flow and free cash flow margin both weakened, with operating cash flow lower and capital expenditure higher. Versus the same quarter one year earlier, free cash flow and margin also weakened, despite operating cash flow being higher and revenue slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$3.2B
Capital spending and related asset purchases.
FCF margin
-17.6%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-12-31 | $6.8B | $2.0B | $3.2B | -$1.2B | -17.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -178.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 46.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$56.7B | 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 Growth
Capital expenditure increased from both the prior quarter and the year-ago quarter, while operating cash flow declined sequentially. This combination was the strongest observable driver of the more negative free cash flow.
Higher capital expenditure outpaced operating cash flow, leading to a larger free cash flow deficit.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose from both the prior quarter and the year-ago quarter, yet free cash flow margin turned more negative as capital expenditure exceeded operating cash flow. Operating cash flow was higher than a year earlier but lower than the preceding quarter, resulting in a cash conversion gap that widened sequentially.
Compared to the prior quarter, free cash flow and free cash flow margin both weakened, with operating cash flow lower and capital expenditure higher. Versus the same quarter one year earlier, free cash flow and margin also weakened, despite operating cash flow being higher and revenue slightly higher.
Monitor the relationship between capital expenditure and operating cash flow, as the gap widened significantly this quarter.