Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to the prior quarter and the year-ago period, but operating cash flow declined. The company's free cash flow became negative, driven by a significant rise in capital expenditure.
- Operating cash flow was lower than the prior quarter and the year-ago period, while capital expenditure increased substantially. As a result, free cash flow turned negative and the free cash flow margin was negative, indicating that capital outlays exceeded operating cash generation.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow was lower, capital expenditure was much higher, and free cash flow shifted from positive to negative. Versus the same quarter one year earlier, revenue was higher, operating cash flow was slightly lower, capital expenditure was markedly higher, and free cash flow went from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$65.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$154.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$304.0M
Cash generated by operations before capital spending.
CapEx
$458.0M
Capital spending and related asset purchases.
FCF margin
-21.4%
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 | $48.0M | $301.2M | $46.2M | $255.0M | 530.8% |
| 2025-06-30 | $67.2M | $368.1M | $646.9M | -$278.8M | -415.0% |
| 2025-09-30 | $75.9M | $318.0M | $74.7M | $243.3M | 320.6% |
| 2025-12-31 | $719.6M | $304.0M | $458.0M | -$154.0M | -21.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -41.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 63.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Elevated capital expenditure
Capital expenditure in the current quarter was substantially higher than both the prior quarter and the year-ago period, consistent with the company's stated capital allocation priority of investing in quality assets. This increase was the primary factor behind the negative free cash flow.
The elevated capital spending outweighed operating cash flow, resulting in negative free cash flow for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter and the year-ago period, while capital expenditure increased substantially. As a result, free cash flow turned negative and the free cash flow margin was negative, indicating that capital outlays exceeded operating cash generation.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow was lower, capital expenditure was much higher, and free cash flow shifted from positive to negative. Versus the same quarter one year earlier, revenue was higher, operating cash flow was slightly lower, capital expenditure was markedly higher, and free cash flow went from positive to negative.
Monitor the level of capital expenditure relative to operating cash flow, as the current quarter's negative free cash flow resulted from a significant increase in capital spending.