Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned deeply negative this quarter, driven by a large operating cash outflow and elevated capital spending. Revenue was higher than a year ago, but the cash conversion weakened sharply versus both the prior quarter and the same quarter last year.
- Operating cash flow was negative, and with capital expenditure remaining elevated, free cash flow was deeply negative, resulting in a negative free cash flow margin. This marks a significant deterioration in cash conversion compared to the prior quarter's strongly positive margin and the year-ago quarter's modestly negative margin.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow swung from positive to negative, and free cash flow turned from a large positive to a large negative. Versus the same quarter one year earlier, revenue was higher, operating cash flow worsened from positive to negative, and free cash flow became more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$754.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$350.0M
Cash generated by operations before capital spending.
CapEx
$404.0M
Capital spending and related asset purchases.
FCF margin
-8.1%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $9.5B | $4.6B | $370.0M | $4.3B | 45.0% |
| 2024-09-30 | $9.9B | $3.3B | $379.0M | $3.0B | 29.9% |
| 2024-12-31 | $9.7B | $4.0B | $278.0M | $3.7B | 38.4% |
| 2025-03-31 | $9.3B | -$350.0M | $404.0M | -$754.0M | -8.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -28.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | 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.
Operating Cash Flow Swing
Operating cash flow shifted from positive in both comparison periods to negative this quarter, which is the strongest observable driver of the free cash flow decline. Capital expenditure was slightly lower than a year ago but higher than the prior quarter, yet the operating cash flow swing alone accounts for the negative free cash flow.
The negative operating cash flow directly caused free cash flow to be deeply negative, reversing the prior quarter's large surplus.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, and with capital expenditure remaining elevated, free cash flow was deeply negative, resulting in a negative free cash flow margin. This marks a significant deterioration in cash conversion compared to the prior quarter's strongly positive margin and the year-ago quarter's modestly negative margin.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow swung from positive to negative, and free cash flow turned from a large positive to a large negative. Versus the same quarter one year earlier, revenue was higher, operating cash flow worsened from positive to negative, and free cash flow became more negative.
Monitor whether operating cash flow returns to positive territory in the coming quarter, as the current negative level is the primary driver of the free cash flow deficit.