Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved sequentially but remained below the prior year's level, while capital expenditure rose, resulting in a negative free cash flow that narrowed from the previous quarter but turned negative compared to a positive free cash flow a year ago. The free cash flow margin weakened year over year but improved from the preceding quarter.
- Revenue declined sequentially but increased year over year. Operating cash flow rose from the prior quarter yet fell from the same quarter last year. Capital expenditure was higher both sequentially and year over year, contributing to a free cash flow that was negative in the current quarter, improved from the prior quarter's larger deficit but reversed from a positive figure one year earlier.
- Compared to the immediately preceding quarter, operating cash flow increased while capital expenditure also rose, leading to a smaller free cash flow deficit and an improved free cash flow margin. Versus the same quarter one year earlier, operating cash flow was lower and capital expenditure was higher, turning free cash flow from positive to negative and weakening the margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$619.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$2.8B
Capital spending and related asset purchases.
FCF margin
-8.9%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $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% |
| 2025-06-30 | $7.0B | $2.2B | $2.8B | -$619.0M | -8.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -70.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 40.2% | 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 rose both sequentially and year over year, outpacing the improvement in operating cash flow and driving free cash flow into negative territory for the current quarter.
Higher capital spending was the strongest observable factor behind the negative free cash flow and the year-over-year margin decline.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined sequentially but increased year over year. Operating cash flow rose from the prior quarter yet fell from the same quarter last year. Capital expenditure was higher both sequentially and year over year, contributing to a free cash flow that was negative in the current quarter, improved from the prior quarter's larger deficit but reversed from a positive figure one year earlier.
Compared to the immediately preceding quarter, operating cash flow increased while capital expenditure also rose, leading to a smaller free cash flow deficit and an improved free cash flow margin. Versus the same quarter one year earlier, operating cash flow was lower and capital expenditure was higher, turning free cash flow from positive to negative and weakening the margin.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the gap widened year over year and contributed to the negative free cash flow.