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 year-ago quarter, but operating cash flow declined sharply versus the prior quarter, leading to negative free cash flow. Capital expenditure remained elevated, and free cash flow margin turned negative, similar to the year-ago level.
- Revenue rose while operating cash flow fell, resulting in a lower cash conversion rate. Capital expenditure exceeded operating cash flow, producing negative free cash flow and a negative margin.
- Compared with the prior quarter, revenue was higher but operating cash flow was significantly lower, and free cash flow swung from positive to negative. Versus the year-ago quarter, revenue was higher, operating cash flow was lower, and free cash flow remained negative at a similar margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$274.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$849.0M
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
-6.7%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $3.8B | $1.6B | $1.1B | $507.0M | 13.3% |
| 2024-09-30 | $4.2B | $1.7B | $1.3B | $416.0M | 10.0% |
| 2024-12-31 | $4.0B | $2.0B | $1.2B | $806.0M | 20.1% |
| 2025-03-31 | $4.1B | $849.0M | $1.1B | -$274.0M | -6.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -23.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 27.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.1B | 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 Decline
Operating cash flow decreased compared with both the prior quarter and the year-ago quarter, while revenue increased. The filing notes higher cash used for working capital as a factor.
The decline in operating cash flow was the primary reason free cash flow turned negative despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow fell, resulting in a lower cash conversion rate. Capital expenditure exceeded operating cash flow, producing negative free cash flow and a negative margin.
Compared with the prior quarter, revenue was higher but operating cash flow was significantly lower, and free cash flow swung from positive to negative. Versus the year-ago quarter, revenue was higher, operating cash flow was lower, and free cash flow remained negative at a similar margin.
Monitor the trajectory of operating cash flow, as it declined from both the prior quarter and the year-ago quarter despite higher revenue.