Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned deeply negative, resulting in a large negative free cash flow and a significantly weakened cash conversion margin. Compared to the prior quarter, free cash flow swung from positive to negative, while versus the same quarter last year the negative margin widened slightly.
- Revenue was higher than both the prior quarter and the year-ago quarter, but operating cash flow was deeply negative, producing a free cash flow margin that was sharply lower than the prior quarter and slightly lower than the year-ago quarter.
- Free cash flow and margin weakened substantially from the prior quarter, which had positive operating cash flow. Compared to the same quarter one year earlier, free cash flow was lower and the margin was slightly more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$11.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$8.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$8.4B
Cash generated by operations before capital spending.
CapEx
$319.0M
Capital spending and related asset purchases.
FCF margin
-254.1%
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 | $3.3B | $2.7B | $234.0M | $2.5B | 75.9% |
| 2024-12-31 | $3.4B | -$7.4B | $249.0M | -$7.7B | -225.1% |
| 2025-03-31 | $3.3B | $2.4B | $226.0M | $2.2B | 66.1% |
| 2025-06-30 | $3.4B | -$8.4B | $319.0M | -$8.8B | -254.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1264.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.3% | 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.
Operating Cash Flow Swing
Operating cash flow shifted from positive in the prior quarter to deeply negative in the current quarter, overwhelming the increase in revenue and capital expenditure.
This swing drove free cash flow from positive to negative and caused the free cash flow margin to become deeply negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter, but operating cash flow was deeply negative, producing a free cash flow margin that was sharply lower than the prior quarter and slightly lower than the year-ago quarter.
Free cash flow and margin weakened substantially from the prior quarter, which had positive operating cash flow. Compared to the same quarter one year earlier, free cash flow was lower and the margin was slightly more negative.
Monitor the trajectory of operating cash flow, as its large negative swing is the primary factor behind the current quarter's negative free cash flow.