Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter, but a substantial increase in capital expenditure drove free cash flow deeply negative. Versus the same quarter last year, revenue turned positive while operating cash flow declined, and free cash flow shifted from positive to negative.
- Operating cash flow exceeded revenue, indicating a high cash conversion rate from reported revenue. However, capital expenditure far exceeded operating cash flow, resulting in a negative free cash flow and a deeply negative free cash flow margin.
- Compared to the prior quarter, revenue and operating cash flow were higher, but capital expenditure was substantially higher, causing free cash flow to turn from positive to negative. Compared to the same quarter last year, revenue improved from negative to positive, operating cash flow was lower, capital expenditure was higher, and free cash flow weakened from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$231.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$278.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$368.1M
Cash generated by operations before capital spending.
CapEx
$646.9M
Capital spending and related asset purchases.
FCF margin
-415.0%
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 | $41.9M | $304.7M | $272.3M | $32.4M | 77.2% |
| 2024-12-31 | $693.7M | $310.2M | $87.1M | $223.0M | 32.2% |
| 2025-03-31 | $48.0M | $301.2M | $46.2M | $255.0M | 530.8% |
| 2025-06-30 | $67.2M | $368.1M | $646.9M | -$278.8M | -415.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -123.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 962.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.2B | 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 increased significantly compared to both the prior quarter and the same quarter last year, becoming the primary factor behind the negative free cash flow.
The elevated capital expenditure more than offset the improvement in operating cash flow, resulting in a negative free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded revenue, indicating a high cash conversion rate from reported revenue. However, capital expenditure far exceeded operating cash flow, resulting in a negative free cash flow and a deeply negative free cash flow margin.
Compared to the prior quarter, revenue and operating cash flow were higher, but capital expenditure was substantially higher, causing free cash flow to turn from positive to negative. Compared to the same quarter last year, revenue improved from negative to positive, operating cash flow was lower, capital expenditure was higher, and free cash flow weakened from positive to negative.
Monitor the level of capital expenditure relative to operating cash flow, as the current quarter's spending far exceeded cash generation.