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 quarter, as capital expenditure exceeded operating cash flow. Revenue was lower than the prior quarter but higher than the same quarter last year, while operating cash flow improved year-over-year.
- Operating cash flow of the quarter was lower than the preceding quarter but higher than the year-ago quarter. Capital expenditure increased compared to both prior periods, resulting in negative free cash flow and a negative free cash flow margin that improved from the year-ago quarter but weakened from the prior quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin turned from positive to negative. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was less negative with an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$26.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$408.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$721.0M
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
-14.0%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-09-30 | $3.2B | $1.1B | $728.0M | $322.0M | 10.0% |
| 2025-12-31 | $2.9B | $721.0M | $1.1B | -$408.0M | -14.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -129.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 38.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$22.4B | 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 was higher than both the prior quarter and the year-ago quarter, and exceeded operating cash flow in the current quarter. This was the strongest observable driver of the negative free cash flow.
The elevated capital expenditure relative to operating cash flow directly caused free cash flow to be negative in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of the quarter was lower than the preceding quarter but higher than the year-ago quarter. Capital expenditure increased compared to both prior periods, resulting in negative free cash flow and a negative free cash flow margin that improved from the year-ago quarter but weakened from the prior quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin turned from positive to negative. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was less negative with an improved margin.
Monitor the relationship between capital expenditure and operating cash flow, as the quarter's capital expenditure exceeded operating cash flow, driving negative free cash flow.