Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative in the quarter, driven by operating cash flow that was also negative despite revenue remaining stable. Capital expenditure was a significant use of cash, contributing to a negative free cash flow margin.
- Revenue held steady, yet operating cash flow turned negative, resulting in substantial negative free cash flow after capital expenditure. The free cash flow margin weakened sharply compared to the positive margin in the immediate preceding quarter.
- Compared to the immediately preceding quarter, free cash flow shifted from positive to negative, primarily because operating cash flow dropped from positive to negative while capital expenditure remained similar. Versus the same quarter one year earlier, free cash flow was higher, as the prior year's operating cash flow was also negative but accompanied by higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$784.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$227.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$18.0M
Cash generated by operations before capital spending.
CapEx
$209.0M
Capital spending and related asset purchases.
FCF margin
-6.2%
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 | $4.2B | $365.0M | $115.0M | $250.0M | 5.9% |
| 2024-09-30 | $4.0B | $769.0M | $146.0M | $623.0M | 15.5% |
| 2024-12-31 | $3.7B | $346.0M | $208.0M | $138.0M | 3.7% |
| 2025-03-31 | $3.7B | -$18.0M | $209.0M | -$227.0M | -6.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -60.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.4B | 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 Shift
Operating cash flow swung sharply from positive in the prior quarter to negative in the current quarter, while revenue remained essentially unchanged. This is the strongest observable driver of the negative free cash flow.
The reversal in operating cash flow turned free cash flow from positive to negative, warranting close attention.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue held steady, yet operating cash flow turned negative, resulting in substantial negative free cash flow after capital expenditure. The free cash flow margin weakened sharply compared to the positive margin in the immediate preceding quarter.
Compared to the immediately preceding quarter, free cash flow shifted from positive to negative, primarily because operating cash flow dropped from positive to negative while capital expenditure remained similar. Versus the same quarter one year earlier, free cash flow was higher, as the prior year's operating cash flow was also negative but accompanied by higher capital expenditure.
Monitor whether operating cash flow can return to positive levels in the coming quarter, as it is the primary driver of free cash flow.