Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than both the prior quarter and the same quarter last year. Operating cash flow decreased versus both comparable periods, while capital expenditure increased, resulting in negative free cash flow for the quarter.
- The free cash flow margin turned negative as operating cash flow declined and capital expenditure rose, reversing the positive margins seen in the prior quarter and the same quarter last year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was higher. Compared to the same quarter one year earlier, revenue improved but operating cash flow weakened and capital expenditure grew, leading to a much lower free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$427.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$47.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$858.3M
Cash generated by operations before capital spending.
CapEx
$906.1M
Capital spending and related asset purchases.
FCF margin
-1.1%
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 | $3.9B | $540.9M | $828.8M | -$287.9M | -7.5% |
| 2024-12-31 | $4.4B | $1.3B | $726.9M | $601.0M | 13.6% |
| 2025-03-31 | $4.6B | $954.4M | $792.2M | $162.2M | 3.6% |
| 2025-06-30 | $4.3B | $858.3M | $906.1M | -$47.8M | -1.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -7.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 21.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.7B | 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, exceeding operating cash flow in the current period. This was the strongest observable driver behind the negative free cash flow.
The elevated capital expenditure more than offset the decline in operating cash flow, resulting in negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The free cash flow margin turned negative as operating cash flow declined and capital expenditure rose, reversing the positive margins seen in the prior quarter and the same quarter last year.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was higher. Compared to the same quarter one year earlier, revenue improved but operating cash flow weakened and capital expenditure grew, leading to a much lower free cash flow.
Monitor the trend in capital expenditure relative to operating cash flow, as elevated spending continued to pressure free cash flow.