Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Free cash flow remained negative, though the deficit narrowed significantly compared to one year earlier.
- Operating cash flow exceeded revenue in relative terms compared to one year ago, but capital expenditure also increased, resulting in a negative free cash flow margin that improved from the prior year and was slightly worse than the prior quarter.
- Compared to the preceding quarter, revenue declined and operating cash flow fell, but capital expenditure dropped more sharply, leading to a free cash flow deficit that was slightly smaller. Versus the same quarter one year ago, revenue and operating cash flow both increased, and the free cash flow deficit narrowed materially.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$642.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$72.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$599.2M
Cash generated by operations before capital spending.
CapEx
$671.8M
Capital spending and related asset purchases.
FCF margin
-1.7%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-09-30 | $4.2B | $599.2M | $671.8M | -$72.6M | -1.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -15.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 16.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$17.3B | 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 exceeded operating cash flow in the quarter, which was the primary reason for the negative free cash flow. This relationship also held in the prior quarter, though the gap narrowed compared to one year earlier.
Until capital expenditure falls below operating cash flow, free cash flow is likely to remain negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded revenue in relative terms compared to one year ago, but capital expenditure also increased, resulting in a negative free cash flow margin that improved from the prior year and was slightly worse than the prior quarter.
Compared to the preceding quarter, revenue declined and operating cash flow fell, but capital expenditure dropped more sharply, leading to a free cash flow deficit that was slightly smaller. Versus the same quarter one year ago, revenue and operating cash flow both increased, and the free cash flow deficit narrowed materially.
Monitor capital expenditure relative to operating cash flow, as it continued to exceed operating cash flow and drove the negative free cash flow.