Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved from the prior quarter but fell relative to the same quarter last year. Capital expenditure rose significantly, leading to a deeper free cash flow deficit and a weakened margin.
- Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was higher than the previous quarter but lower than the same quarter last year. Capital expenditure exceeded operating cash flow, resulting in negative free cash flow and a free cash flow margin that contracted sequentially and year-over-year.
- Compared to the prior quarter, revenue and operating cash flow were higher, yet capital expenditure increased more sharply, pulling free cash flow lower and the margin weaker. Versus the same quarter last year, revenue was slightly higher while operating cash flow was lower, and capital expenditure rose, resulting in a larger free cash flow deficit and a more negative margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$6.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$2.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$3.4B
Capital spending and related asset purchases.
FCF margin
-67.7%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-09-30 | $2.8B | $1.1B | $2.6B | -$1.5B | -52.6% |
| 2025-12-31 | $3.3B | $1.2B | $3.4B | -$2.2B | -67.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -631.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 104.0% | 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 compared to both the prior quarter and the same quarter last year. This increase was the strongest observable driver of the deeper free cash flow deficit, exceeding the improvement in operating cash flow.
The higher capital expenditure more than offset the sequential improvement in operating cash flow, resulting in a larger free cash outflow and a weaker margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was higher than the previous quarter but lower than the same quarter last year. Capital expenditure exceeded operating cash flow, resulting in negative free cash flow and a free cash flow margin that contracted sequentially and year-over-year.
Compared to the prior quarter, revenue and operating cash flow were higher, yet capital expenditure increased more sharply, pulling free cash flow lower and the margin weaker. Versus the same quarter last year, revenue was slightly higher while operating cash flow was lower, and capital expenditure rose, resulting in a larger free cash flow deficit and a more negative margin.
Monitor the trajectory of capital expenditure relative to operating cash flow, as its elevated level is the primary factor widening the free cash flow deficit.