Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable compared to the same quarter last year, but free cash flow turned more negative. The quarter saw higher capital expenditure relative to operating cash flow, widening the free cash flow deficit.
- Operating cash flow improved from a year ago and was lower than the prior quarter. However, capital expenditure consumed all operating cash flow and more, resulting in a negative free cash flow margin. The gap between operating cash flow and capital expenditure drove weaker cash conversion.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all declined sharply, while capital expenditure increased. Versus the same quarter one year ago, revenue was stable, operating cash flow improved, but capital expenditure rose more, resulting in a worse free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$819.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$192.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$476.8M
Cash generated by operations before capital spending.
CapEx
$669.5M
Capital spending and related asset purchases.
FCF margin
-17.1%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-09-30 | $1.8B | $665.0M | $623.0M | $42.0M | 2.3% |
| 2025-12-31 | $1.1B | $476.8M | $669.5M | -$192.7M | -17.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1095.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 59.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Higher capital expenditure
Capital expenditure in the current quarter was higher than both the prior quarter and the same quarter last year, with operating cash flow insufficient to cover it. This was the strongest observable factor behind the negative free cash flow and margin decline.
Higher capital expenditure, without a corresponding increase in operating cash flow, caused free cash flow to turn more negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved from a year ago and was lower than the prior quarter. However, capital expenditure consumed all operating cash flow and more, resulting in a negative free cash flow margin. The gap between operating cash flow and capital expenditure drove weaker cash conversion.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all declined sharply, while capital expenditure increased. Versus the same quarter one year ago, revenue was stable, operating cash flow improved, but capital expenditure rose more, resulting in a worse free cash flow margin.
Monitor the trend in capital expenditure relative to operating cash flow, as persistent outsize spending may pressure liquidity.