Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, while operating cash flow was stable year over year but lower than the prior quarter. Free cash flow remained negative and widened versus both comparison periods, driven by higher capital expenditure.
- Operating cash flow as a percentage of revenue weakened sequentially and was stable year over year, while capital expenditure rose relative to both periods, resulting in a more negative free cash flow margin.
- Compared to the immediately preceding quarter, revenue improved but operating cash flow declined, and free cash flow worsened. Versus the same quarter one year earlier, revenue was higher, operating cash flow was stable, and free cash flow was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$105.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$2.4B
Capital spending and related asset purchases.
FCF margin
-15.3%
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 | $6.5B | $2.7B | $2.1B | $563.0M | 8.7% |
| 2024-09-30 | $7.3B | $3.6B | $2.3B | $1.3B | 17.9% |
| 2024-12-31 | $6.3B | $2.2B | $2.7B | -$576.0M | -9.1% |
| 2025-03-31 | $7.8B | $1.3B | $2.4B | -$1.2B | -15.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -89.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 31.3% | 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.
Capital Expenditure Increase
Capital expenditure was higher than both the prior quarter and the same quarter last year, which was the strongest observable factor behind the more negative free cash flow.
Higher capital expenditure directly reduced free cash flow despite improved revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue weakened sequentially and was stable year over year, while capital expenditure rose relative to both periods, resulting in a more negative free cash flow margin.
Compared to the immediately preceding quarter, revenue improved but operating cash flow declined, and free cash flow worsened. Versus the same quarter one year earlier, revenue was higher, operating cash flow was stable, and free cash flow was lower.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the gap widened in the current quarter.