Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter and slightly lower than a year ago. Free cash flow was negative, driven by an operating cash outflow and capital spending, though the free cash flow margin improved compared to the same quarter last year.
- Operating cash flow was negative, and capital expenditure exceeded that outflow, resulting in negative free cash flow and a negative free cash flow margin. The conversion from revenue to free cash flow was weak this quarter.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both turned from positive to negative, and the free cash flow margin weakened significantly. Versus the same quarter one year earlier, operating cash flow was slightly more negative, but lower capital expenditure led to a less negative free cash flow and an improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$250.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$61.1M
Cash generated by operations before capital spending.
CapEx
$189.3M
Capital spending and related asset purchases.
FCF margin
-4.7%
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 | $6.3B | $1.2B | $250.9M | $952.0M | 15.2% |
| 2024-09-30 | $6.2B | $1.1B | $235.3M | $839.4M | 13.6% |
| 2024-12-31 | $5.3B | $934.5M | $300.0M | $634.5M | 12.0% |
| 2025-03-31 | $5.3B | -$61.1M | $189.3M | -$250.4M | -4.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -49.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.8B | 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 Weakness
Operating cash flow was negative this quarter, a reversal from the prior quarter's strong positive figure and slightly worse than the same quarter last year. This is the primary factor behind the negative free cash flow.
The negative operating cash flow directly drove the negative free cash flow and margin, despite lower capital expenditure compared to both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, and capital expenditure exceeded that outflow, resulting in negative free cash flow and a negative free cash flow margin. The conversion from revenue to free cash flow was weak this quarter.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both turned from positive to negative, and the free cash flow margin weakened significantly. Versus the same quarter one year earlier, operating cash flow was slightly more negative, but lower capital expenditure led to a less negative free cash flow and an improved free cash flow margin.
Monitor whether operating cash flow turns positive in the next quarter, as it has been negative in the first quarter of the past two fiscal years.