Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned deeply negative this quarter as operating cash flow was negative, while capital expenditure remained elevated. The free cash flow margin weakened sharply compared with both the prior quarter and the same quarter last year.
- Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow was negative, leading to a negative free cash flow, and capital expenditure exceeded operating cash flow, resulting in a negative free cash flow margin.
- Compared with the prior quarter, operating cash flow shifted from positive to negative, capital expenditure increased, and free cash flow turned from positive to negative. Compared with the same quarter last year, operating cash flow was lower, capital expenditure was higher, and free cash flow was more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$328.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$90.7M
Cash generated by operations before capital spending.
CapEx
$237.3M
Capital spending and related asset purchases.
FCF margin
-12.2%
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 | $3.8B | $869.2M | $177.5M | $691.7M | 18.0% |
| 2024-09-30 | $3.6B | $521.2M | $170.8M | $350.4M | 9.7% |
| 2024-12-31 | $3.2B | $494.5M | $111.1M | $383.4M | 11.8% |
| 2025-03-31 | $2.7B | -$90.7M | $237.3M | -$328.0M | -12.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -271.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.8B | 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 weakness
Operating cash flow was negative this quarter, a sharp reversal from the positive levels in both the prior quarter and the year-ago quarter. This was the strongest observable factor behind the negative free cash flow.
Negative operating cash flow drove free cash flow deeply negative despite the absence of a proportional decline in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow was negative, leading to a negative free cash flow, and capital expenditure exceeded operating cash flow, resulting in a negative free cash flow margin.
Compared with the prior quarter, operating cash flow shifted from positive to negative, capital expenditure increased, and free cash flow turned from positive to negative. Compared with the same quarter last year, operating cash flow was lower, capital expenditure was higher, and free cash flow was more negative.
Monitor whether operating cash flow can return to positive levels in upcoming quarters.