Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative with an expanded negative margin, as operating cash flow turned deeply negative while capital expenditure rose moderately. Revenue decreased compared to both the prior quarter and the same quarter one year earlier.
- Revenue declined while operating cash flow swung from positive to a large negative figure, resulting in a significantly more negative free cash flow and free cash flow margin. The cash conversion weakened materially as capital expenditure was higher than in the prior-year quarter.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all worsened, with free cash flow margin declining sharply. Versus the same quarter one year earlier, revenue was lower, operating cash flow dropped from a large positive to a negative figure, and free cash flow turned from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$681.0M
Cash generated by operations before capital spending.
CapEx
$463.0M
Capital spending and related asset purchases.
FCF margin
-89.0%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $1.2B | -$188.0M | $338.0M | -$526.0M | -42.4% |
| 2025-06-30 | $1.3B | $64.0M | $462.0M | -$398.0M | -30.5% |
| 2025-09-30 | $1.6B | $26.0M | $447.0M | -$421.0M | -27.0% |
| 2025-12-31 | $1.3B | -$681.0M | $463.0M | -$1.1B | -89.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 141.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 36.0% | 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.
Sharp decline in operating cash flow
Operating cash flow shifted from a positive figure in the prior quarter and a large positive in the year-ago quarter to a substantial negative this quarter. This was the most notable observable change among the metrics.
The negative operating cash flow drove free cash flow deeper into negative territory despite only a modest increase in capital expenditure from the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined while operating cash flow swung from positive to a large negative figure, resulting in a significantly more negative free cash flow and free cash flow margin. The cash conversion weakened materially as capital expenditure was higher than in the prior-year quarter.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all worsened, with free cash flow margin declining sharply. Versus the same quarter one year earlier, revenue was lower, operating cash flow dropped from a large positive to a negative figure, and free cash flow turned from positive to negative.
The trajectory of operating cash flow, given its swing from positive to deeply negative compared to both prior periods.