Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative this quarter, driven by operating cash flow that was lower than capital expenditure. Revenue was slightly lower than the prior quarter but higher than a year ago, while the free cash flow margin weakened compared to both periods.
- Operating cash flow was substantially lower than revenue, resulting in a negative free cash flow after capital expenditure. The free cash flow margin was negative, reflecting that cash conversion from revenue was insufficient to cover capital spending.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were both lower, and the free cash flow margin weakened from positive to negative. Versus the same quarter one year earlier, operating cash flow was lower, free cash flow was more negative, and the margin also weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$297.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$292.0M
Cash generated by operations before capital spending.
CapEx
$589.2M
Capital spending and related asset purchases.
FCF margin
-3.4%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $9.1B | $1.7B | $724.3M | $945.8M | 10.4% |
| 2024-09-29 | $9.1B | $1.5B | $798.2M | $737.4M | 8.1% |
| 2024-12-29 | $9.4B | $2.1B | $692.9M | $1.4B | 14.7% |
| 2025-03-30 | $8.8B | $292.0M | $589.2M | -$297.2M | -3.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -77.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.7% | 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.
Operating Cash Flow Decline
Operating cash flow was substantially lower than both the prior quarter and the year-ago quarter, while capital expenditure was only moderately lower. This combination caused free cash flow to turn negative and the margin to weaken.
The decline in operating cash flow was the strongest observable driver of the negative free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially lower than revenue, resulting in a negative free cash flow after capital expenditure. The free cash flow margin was negative, reflecting that cash conversion from revenue was insufficient to cover capital spending.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were both lower, and the free cash flow margin weakened from positive to negative. Versus the same quarter one year earlier, operating cash flow was lower, free cash flow was more negative, and the margin also weakened.
Monitor whether operating cash flow can recover to a level that consistently exceeds capital expenditure, as the current gap drove free cash flow negative.