Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, while operating cash flow was higher than a year ago but lower than the previous quarter. Free cash flow turned negative this quarter, driven by a substantial rise in capital expenditure.
- Operating cash flow as a proportion of revenue weakened from the prior quarter and improved from a year ago. However, free cash flow margin turned negative due to capital expenditure exceeding operating cash flow, contrasting with positive margins in both comparison periods.
- Compared to the prior quarter, revenue was higher but operating cash flow was lower, and capital expenditure increased sharply, flipping free cash flow from positive to negative. Versus the same quarter last year, revenue and operating cash flow were both higher, yet capital expenditure rose even more, resulting in a lower free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$989.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$2.5B
Capital spending and related asset purchases.
FCF margin
-19.2%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $3.8B | $1.5B | $552.0M | $915.0M | 24.3% |
| 2025-03-31 | $4.0B | $1.6B | $428.0M | $1.2B | 30.0% |
| 2025-06-30 | $4.5B | $1.7B | $836.0M | $910.0M | 20.1% |
| 2025-09-30 | $5.1B | $1.5B | $2.5B | -$989.0M | -19.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -62.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 47.8% | 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.
Capital Expenditure Surge
Capital expenditure was substantially higher than both the prior quarter and the same quarter last year, far exceeding the growth in operating cash flow. This shift was the strongest observable driver of the negative free cash flow.
The elevated capital expenditure converted a positive operating cash flow into a negative free cash flow, reversing the trend from both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue weakened from the prior quarter and improved from a year ago. However, free cash flow margin turned negative due to capital expenditure exceeding operating cash flow, contrasting with positive margins in both comparison periods.
Compared to the prior quarter, revenue was higher but operating cash flow was lower, and capital expenditure increased sharply, flipping free cash flow from positive to negative. Versus the same quarter last year, revenue and operating cash flow were both higher, yet capital expenditure rose even more, resulting in a lower free cash flow.
Monitor the level of capital expenditure in upcoming quarters, as its increase was the primary factor behind the negative free cash flow this quarter.