Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned negative this quarter, driving free cash flow deeply negative despite higher revenue. The free cash flow margin weakened sharply compared to the prior quarter but improved dramatically versus the same quarter last year.
- Revenue increased from the prior quarter, yet operating cash flow swung from positive to negative, resulting in negative free cash flow and a negative margin. Capital expenditure was higher than the prior quarter but lower than the year-ago quarter.
- Compared to the prior quarter, operating cash flow and free cash flow both weakened, and the margin turned negative. Compared to the same quarter one year earlier, operating cash flow and free cash flow improved significantly, and the margin was far less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$8.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$975.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$763.0M
Cash generated by operations before capital spending.
CapEx
$212.0M
Capital spending and related asset purchases.
FCF margin
-15.4%
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 | $5.6B | $6.4B | $117.0M | $6.2B | 111.5% |
| 2025-06-30 | $5.9B | $3.2B | $128.0M | $3.0B | 52.1% |
| 2025-09-30 | $6.1B | $538.0M | $145.0M | $393.0M | 6.4% |
| 2025-12-31 | $6.3B | -$763.0M | $212.0M | -$975.0M | -15.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -39.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | 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 Swing
Operating cash flow moved from positive in the prior quarter to negative this quarter, the strongest observable driver of the negative free cash flow. Revenue growth did not prevent the cash outflow.
This swing caused free cash flow to turn negative and the margin to decline from positive to negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, yet operating cash flow swung from positive to negative, resulting in negative free cash flow and a negative margin. Capital expenditure was higher than the prior quarter but lower than the year-ago quarter.
Compared to the prior quarter, operating cash flow and free cash flow both weakened, and the margin turned negative. Compared to the same quarter one year earlier, operating cash flow and free cash flow improved significantly, and the margin was far less negative.
Monitor whether operating cash flow returns to positive levels in the next quarter, as the current negative swing is the primary driver of the weakened free cash flow.