Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow turned negative as a large capital expenditure program outweighed operating cash flow. The company's filing notes that current liabilities exceeded current assets at quarter end, but management considers liquidity adequate given available credit facilities and access to capital markets.
- Revenue was higher than the prior quarter and the year-ago quarter. Operating cash flow improved from both periods, but capital expenditure increased substantially, more than offsetting the cash generated from operations. Consequently, free cash flow declined from a positive position in the prior quarter to a negative position, and the free cash flow margin weakened accordingly.
- Compared to the immediately preceding quarter, free cash flow weakened from positive to negative. Versus the same quarter one year earlier, the free cash flow deficit widened, reflecting a higher level of investment spending.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
-$625.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$938.9M
Cash generated by operations before capital spending.
CapEx
$1.6B
Capital spending and related asset purchases.
FCF margin
-29.7%
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 | $2.3B | $581.8M | n/a | n/a | n/a |
| 2025-03-31 | $3.1B | $1.2B | $701.1M | $461.5M | 14.7% |
| 2025-06-30 | $2.0B | $853.3M | $829.4M | $23.9M | 1.2% |
| 2025-09-30 | $2.1B | $938.9M | $1.6B | -$625.7M | -29.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -231.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 74.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$19.5B | 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 Growth
Capital expenditure in the current quarter was significantly higher than both the prior quarter and the year-ago quarter, while operating cash flow increased at a slower pace. This resulted in a substantial free cash flow deficit.
The elevated investment outlay consumed operating cash flow and required external financing, as indicated by the negative free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter and the year-ago quarter. Operating cash flow improved from both periods, but capital expenditure increased substantially, more than offsetting the cash generated from operations. Consequently, free cash flow declined from a positive position in the prior quarter to a negative position, and the free cash flow margin weakened accordingly.
Compared to the immediately preceding quarter, free cash flow weakened from positive to negative. Versus the same quarter one year earlier, the free cash flow deficit widened, reflecting a higher level of investment spending.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the current quarter's investment spending far exceeded internally generated cash.