Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative for the quarter, weakened sequentially but improved from a sharply negative year-ago level. The cash conversion cycle was pressured by capital expenditure exceeding operating cash flow.
- Operating cash flow of three-point-seven billion in revenue was one-point-five billion, while capital expenditure of two-point-three billion drove free cash flow to negative eight hundred fifty-four million, resulting in a free cash flow margin of negative twenty-three point two percent.
- Compared to the prior quarter, revenue was higher and operating cash flow improved, while capital expenditure was slightly lower, leading to a less negative free cash flow margin. Versus the same quarter last year, revenue was flat, operating cash flow was lower, capital expenditure was higher, and free cash flow margin weakened sharply.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$4.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$854.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$2.3B
Capital spending and related asset purchases.
FCF margin
-23.2%
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 | $2.5B | $669.0M | $1.9B | -$1.2B | -49.4% |
| 2024-09-30 | $2.6B | $1.0B | $1.9B | -$913.0M | -35.5% |
| 2024-12-31 | $3.1B | $1.4B | $2.5B | -$1.1B | -35.4% |
| 2025-03-31 | $3.7B | $1.5B | $2.3B | -$854.0M | -23.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -93.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 63.5% | 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 Strain
Capital expenditure totaled two-point-three billion, exceeding operating cash flow of one-point-five billion, which accounted for the entirety of the negative free cash flow. This was a stronger influence than revenue changes.
The gap between capital spending and operating cash flow persisted, keeping free cash flow negative despite higher sequential revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of three-point-seven billion in revenue was one-point-five billion, while capital expenditure of two-point-three billion drove free cash flow to negative eight hundred fifty-four million, resulting in a free cash flow margin of negative twenty-three point two percent.
Compared to the prior quarter, revenue was higher and operating cash flow improved, while capital expenditure was slightly lower, leading to a less negative free cash flow margin. Versus the same quarter last year, revenue was flat, operating cash flow was lower, capital expenditure was higher, and free cash flow margin weakened sharply.
Monitor capital expenditure relative to operating cash flow, as it remained the primary factor driving the negative free cash flow.