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, driven by capital expenditure exceeding operating cash flow. Revenue and operating cash flow both decreased from the prior quarter, while capital expenditure increased.
- Operating cash flow converted to free cash flow at a negative margin, as capital expenditure consumed more than the cash generated from operations. The free cash flow margin improved compared to the same quarter one year earlier but weakened sharply from the prior quarter.
- Compared to the prior quarter, revenue and operating cash flow were lower, while capital expenditure was higher, resulting in a swing from positive to negative free cash flow. Versus the same quarter one year earlier, revenue was higher, operating cash flow was slightly lower, capital expenditure was lower, and free cash flow was less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$644.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$309.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$478.0M
Cash generated by operations before capital spending.
CapEx
$787.0M
Capital spending and related asset purchases.
FCF margin
-11.0%
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 | $2.6B | $623.0M | $768.0M | -$145.0M | -5.5% |
| 2024-12-31 | $2.5B | $367.0M | $978.0M | -$611.0M | -24.8% |
| 2025-03-31 | $3.2B | $1.0B | $628.0M | $421.0M | 13.1% |
| 2025-06-30 | $2.8B | $478.0M | $787.0M | -$309.0M | -11.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -52.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 28.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$22.5B | 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 Exceeds Operating Cash Flow
Capital expenditure in the current quarter was higher than operating cash flow, leading to negative free cash flow. This relationship reversed from the prior quarter, where operating cash flow comfortably covered capital spending.
The elevated capital expenditure relative to operating cash flow was the strongest observable driver of the negative free cash flow in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow converted to free cash flow at a negative margin, as capital expenditure consumed more than the cash generated from operations. The free cash flow margin improved compared to the same quarter one year earlier but weakened sharply from the prior quarter.
Compared to the prior quarter, revenue and operating cash flow were lower, while capital expenditure was higher, resulting in a swing from positive to negative free cash flow. Versus the same quarter one year earlier, revenue was higher, operating cash flow was slightly lower, capital expenditure was lower, and free cash flow was less negative.
Monitor the level of capital expenditure relative to operating cash flow, as it was the primary factor driving the negative free cash flow in the current quarter.