Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year, yet free cash flow turned negative after being positive in the prior quarter. Operating cash flow weakened compared to the previous quarter but strengthened from a year ago, while capital expenditure remained elevated.
- With revenue higher than both comparison periods, the cash conversion from revenue to operating cash flow was lower than the prior quarter but higher than a year earlier. Free cash flow was negative, driven by operating cash flow that was insufficient to cover capital expenditure, while the free cash flow margin declined sequentially after improvement from the year-ago level.
- Compared to the prior quarter, free cash flow shifted from positive to negative as operating cash flow decreased and capital expenditure remained high; versus a year ago, free cash flow has improved from a larger deficit, but remains negative. Operating cash flow was weaker sequentially but improved from a year earlier, while revenue was higher than both periods.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$59.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$242.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$235.0M
Cash generated by operations before capital spending.
CapEx
$477.0M
Capital spending and related asset purchases.
FCF margin
-3.2%
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 | $3.0B | $340.0M | $177.0M | $163.0M | 5.5% |
| 2024-09-30 | $7.7B | $320.0M | $512.0M | -$192.0M | -2.5% |
| 2024-12-31 | $7.5B | $781.0M | $569.0M | $212.0M | 2.8% |
| 2025-03-31 | $7.7B | $235.0M | $477.0M | -$242.0M | -3.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -63.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.2% | 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 Outpacing Operating Cash Flow
Capital expenditure increased from both the prior quarter and the same quarter last year, while operating cash flow declined sharply from the prior quarter and only partially improved from a year ago. This imbalance led to a negative free cash flow despite higher revenue.
Higher capital spending was the primary factor that turned free cash flow negative in the current quarter, outweighing the benefit of increased revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue higher than both comparison periods, the cash conversion from revenue to operating cash flow was lower than the prior quarter but higher than a year earlier. Free cash flow was negative, driven by operating cash flow that was insufficient to cover capital expenditure, while the free cash flow margin declined sequentially after improvement from the year-ago level.
Compared to the prior quarter, free cash flow shifted from positive to negative as operating cash flow decreased and capital expenditure remained high; versus a year ago, free cash flow has improved from a larger deficit, but remains negative. Operating cash flow was weaker sequentially but improved from a year earlier, while revenue was higher than both periods.
Monitor capital expenditure relative to operating cash flow, as elevated spending this quarter outpaced cash generation and drove a negative free cash flow.