Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable sequentially but higher year over year. Free cash flow turned negative, driven by operating cash flow that weakened from both the prior quarter and the year-ago period, while capital expenditure rose.
- Operating cash flow as a share of revenue declined, leading to a negative free cash flow margin. Capital expenditure exceeded operating cash flow, resulting in a cash deficit for the quarter.
- Compared to the prior quarter, operating cash flow was lower and capital expenditure was higher, causing free cash flow to shift from positive to negative. Versus the same quarter last year, operating cash flow was lower and free cash flow weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$246.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$1.5B
Capital spending and related asset purchases.
FCF margin
-1.6%
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 | $14.7B | $2.2B | $1.7B | $549.0M | 3.7% |
| 2025-03-31 | $13.2B | $3.7B | $1.2B | $2.5B | 18.7% |
| 2025-06-30 | $15.2B | $2.2B | $1.3B | $930.0M | 6.1% |
| 2025-09-30 | $15.2B | $1.2B | $1.5B | -$246.0M | -1.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -25.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.6% | 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.
Negative free cash flow
Free cash flow turned negative in the current quarter as operating cash flow fell short of capital expenditure. Capital expenditure increased while operating cash flow contracted compared with both the prior quarter and the year-ago quarter.
This resulted in the weakest free cash flow margin among the three reported periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue declined, leading to a negative free cash flow margin. Capital expenditure exceeded operating cash flow, resulting in a cash deficit for the quarter.
Compared to the prior quarter, operating cash flow was lower and capital expenditure was higher, causing free cash flow to shift from positive to negative. Versus the same quarter last year, operating cash flow was lower and free cash flow weakened.
Monitor whether operating cash flow can recover toward prior levels, given its decline relative to both comparison periods.