Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative in the current quarter, driven by capital expenditure exceeding operating cash flow. Revenue and operating cash flow both decreased compared to the prior quarter, while capital expenditure also declined.
- Operating cash flow as a proportion of revenue weakened relative to the prior quarter and was substantially lower than the same quarter last year. The free cash flow margin remained negative, reflecting capital expenditure that exceeded operating cash flow.
- Compared to the prior quarter, revenue and operating cash flow were lower, while capital expenditure also decreased, resulting in a less negative free cash flow. Versus the same quarter last year, operating cash flow and free cash flow were significantly lower, and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$118.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$572.0M
Cash generated by operations before capital spending.
CapEx
$690.0M
Capital spending and related asset purchases.
FCF margin
-3.1%
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 | $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% |
| 2025-06-30 | $3.8B | $572.0M | $690.0M | -$118.0M | -3.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -36.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 18.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$15.3B | 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 vs. Operating Cash Flow
Capital expenditure in the current quarter was higher than operating cash flow, a reversal from the same quarter last year when operating cash flow substantially exceeded capital expenditure. This shift is the strongest observable driver of the negative free cash flow.
The excess of capital expenditure over operating cash flow directly resulted in negative free cash flow for the quarter.
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 relative to the prior quarter and was substantially lower than the same quarter last year. The free cash flow margin remained negative, reflecting capital expenditure that exceeded operating cash flow.
Compared to the prior quarter, revenue and operating cash flow were lower, while capital expenditure also decreased, resulting in a less negative free cash flow. Versus the same quarter last year, operating cash flow and free cash flow were significantly lower, and capital expenditure was higher.
Monitor the relationship between operating cash flow and capital expenditure, as the current quarter's capital expenditure exceeded operating cash flow, contributing to negative free cash flow.