Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved year over year but remained below capital expenditure, resulting in negative free cash flow. The free cash flow margin weakened sequentially but improved compared to the same quarter last year.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased year over year, yet capital expenditure rose more sharply, widening the gap to negative free cash flow and a negative margin.
- Compared to the prior quarter, revenue and operating cash flow were lower, while capital expenditure was higher, leading to a more negative free cash flow and margin. Versus the same quarter last year, revenue, operating cash flow, and capital expenditure were all higher, with free cash flow and margin improved but still negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$689.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$220.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$401.9M
Cash generated by operations before capital spending.
CapEx
$622.6M
Capital spending and related asset purchases.
FCF margin
-21.4%
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 | $1.3B | $189.8M | $534.0M | -$344.2M | -26.3% |
| 2024-09-30 | $1.8B | $633.2M | $665.8M | -$32.7M | -1.8% |
| 2024-12-31 | $1.1B | $439.5M | $531.6M | -$92.1M | -8.4% |
| 2025-03-31 | $1.0B | $401.9M | $622.6M | -$220.7M | -21.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 65283.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 60.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.9B | 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 both sequentially and year over year, outpacing the growth in operating cash flow. This was the strongest observable driver of the more negative free cash flow.
Higher capital expenditure directly reduced free cash flow and margin in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased year over year, yet capital expenditure rose more sharply, widening the gap to negative free cash flow and a negative margin.
Compared to the prior quarter, revenue and operating cash flow were lower, while capital expenditure was higher, leading to a more negative free cash flow and margin. Versus the same quarter last year, revenue, operating cash flow, and capital expenditure were all higher, with free cash flow and margin improved but still negative.
Monitor the trend in capital expenditure relative to operating cash flow, as the gap widened sequentially and year over year.