Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher compared to both the prior quarter and the same quarter one year earlier. However, operating cash flow declined from the prior quarter, and capital expenditures rose, leading to a more negative free cash flow and a weaker free cash flow margin.
- The company's cash conversion weakened as revenue growth did not translate into higher operating cash flow relative to the prior quarter. With capital expenditures also increasing, free cash flow turned more negative, and the free cash flow margin contracted.
- Compared to the immediately preceding quarter, revenue improved but operating cash flow decreased, while capital spending increased, resulting in a larger free cash flow deficit. Versus the same quarter one year earlier, both revenue and operating cash flow were higher, but capital expenditures grew more, causing free cash flow to be more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$793.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$448.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$261.4M
Cash generated by operations before capital spending.
CapEx
$709.5M
Capital spending and related asset purchases.
FCF margin
-33.0%
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 | $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% |
| 2025-06-30 | $1.4B | $261.4M | $709.5M | -$448.1M | -33.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -227.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 52.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.8B | 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 expenditures rose compared to both the prior quarter and the same quarter last year, outpacing the growth in operating cash flow.
The higher capital spending, combined with a lower operating cash flow than the prior quarter, widened the free cash flow deficit and reduced the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company's cash conversion weakened as revenue growth did not translate into higher operating cash flow relative to the prior quarter. With capital expenditures also increasing, free cash flow turned more negative, and the free cash flow margin contracted.
Compared to the immediately preceding quarter, revenue improved but operating cash flow decreased, while capital spending increased, resulting in a larger free cash flow deficit. Versus the same quarter one year earlier, both revenue and operating cash flow were higher, but capital expenditures grew more, causing free cash flow to be more negative.
Monitor the trend in operating cash flow relative to revenue, as the current quarter showed a decline in cash conversion efficiency.