Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow remained negative but improved compared to the same quarter last year, while revenue declined both sequentially and year on year.
- Operating cash flow was negative this quarter, and capital expenditure was lower than the prior quarter. The free cash flow margin was negative, indicating a cash conversion that weakened sequentially but improved versus the same quarter a year ago.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all decreased significantly. However, compared to the same quarter one year earlier, the free cash flow deficit narrowed even though revenue was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$973.0M
Cash generated by operations before capital spending.
CapEx
$603.0M
Capital spending and related asset purchases.
FCF margin
-8.8%
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 |
|---|---|---|---|---|---|
| 2024-03-23 | $18.3B | -$1.0B | $614.0M | -$1.7B | -9.1% |
| 2024-06-15 | $22.5B | $2.4B | $1.1B | $1.3B | 5.6% |
| 2024-09-07 | $23.3B | $4.9B | $1.1B | $3.8B | 16.1% |
| 2025-03-22 | $17.9B | -$973.0M | $603.0M | -$1.6B | -8.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -85.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year FCF Improvement
The free cash flow deficit improved compared to the same quarter last year, driven by a smaller operating cash outflow and slightly lower capital spending. The filing notes items affecting comparability such as mark-to-market impacts and restructuring charges, but no direct link to cash flow is stated.
This improvement reduced the cash burn rate relative to the same period in the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative this quarter, and capital expenditure was lower than the prior quarter. The free cash flow margin was negative, indicating a cash conversion that weakened sequentially but improved versus the same quarter a year ago.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all decreased significantly. However, compared to the same quarter one year earlier, the free cash flow deficit narrowed even though revenue was lower.
Monitor whether operating cash flow can turn positive in upcoming quarters, as it has been negative in the first quarter of the two fiscal years presented.