Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow was lower than the prior quarter but higher than a year ago, while free cash flow remained negative in both comparable quarters.
- Operating cash flow as a proportion of revenue weakened sequentially but improved from a year earlier. Capital expenditure rose relative to both periods, resulting in a negative free cash flow margin that was slightly improved versus the year-ago quarter.
- Compared to the immediately preceding quarter, operating cash flow was lower and capital expenditure was higher, shifting free cash flow from positive to negative. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow remained negative with a similar margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$169.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$599.0M
Cash generated by operations before capital spending.
CapEx
$768.0M
Capital spending and related asset purchases.
FCF margin
-4.0%
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 | $3.6B | $1.2B | $498.0M | $698.0M | 19.4% |
| 2024-09-30 | $4.3B | $1.7B | $685.0M | $1.0B | 23.4% |
| 2024-12-31 | $3.7B | $1.4B | $430.0M | $923.0M | 25.2% |
| 2025-03-31 | $4.3B | $599.0M | $768.0M | -$169.0M | -4.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 63.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 18.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$15.7B | 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 was higher than both the prior quarter and the year-ago quarter, which was the strongest observable driver of the negative free cash flow. Operating cash flow, while higher year-over-year, was insufficient to cover the elevated capital spending.
The elevated capital expenditure directly contributed to free cash flow remaining negative despite higher revenue and operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue weakened sequentially but improved from a year earlier. Capital expenditure rose relative to both periods, resulting in a negative free cash flow margin that was slightly improved versus the year-ago quarter.
Compared to the immediately preceding quarter, operating cash flow was lower and capital expenditure was higher, shifting free cash flow from positive to negative. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow remained negative with a similar margin.
Monitor the relationship between operating cash flow and capital expenditure, as the gap widened sequentially and remained negative versus free cash flow.