Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative and widened compared to both the prior quarter and the same quarter last year. Operating cash flow declined from the prior quarter while capital expenditure held steady, and both operating cash flow and capital expenditure increased from the year-ago period.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow as a share of revenue decreased from the prior quarter and was mixed compared to the year-ago quarter, as capital expenditure absorbed a larger portion of cash generated.
- Compared to the immediately preceding quarter, free cash flow worsened due to lower operating cash flow and unchanged capital expenditure. Versus the same quarter one year earlier, free cash flow also weakened as the increase in capital expenditure outpaced the increase in operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$4.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$784.0M
Cash generated by operations before capital spending.
CapEx
$2.3B
Capital spending and related asset purchases.
FCF margin
-56.3%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $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% |
| 2025-06-30 | $2.7B | $784.0M | $2.3B | -$1.5B | -56.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -321.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 85.3% | 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 growth outpacing operating cash flow
Capital expenditure remained at the prior quarter's level and increased from the year-ago quarter, while operating cash flow declined from the prior quarter and rose only modestly from a year ago. This resulted in a larger negative free cash flow.
The gap between capital spending and cash from operations widened, pressuring free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow as a share of revenue decreased from the prior quarter and was mixed compared to the year-ago quarter, as capital expenditure absorbed a larger portion of cash generated.
Compared to the immediately preceding quarter, free cash flow worsened due to lower operating cash flow and unchanged capital expenditure. Versus the same quarter one year earlier, free cash flow also weakened as the increase in capital expenditure outpaced the increase in operating cash flow.
Monitor the trend in capital expenditure relative to operating cash flow, as it continues to exceed cash from operations.