Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased from the prior quarter but increased compared to the same quarter last year. Free cash flow improved sequentially despite lower revenue, yet weakened notably versus the year-ago quarter.
- Operating cash flow was higher both sequentially and year-over-year. Free cash flow improved from the prior quarter as capital expenditure was lower, but the free cash flow margin, while up sequentially, remained lower than a year earlier due to a larger increase in capital spending relative to operating cash flow.
- Compared to the immediately preceding quarter, revenue was lower but operating cash flow was higher, leading to a higher free cash flow and an improved margin. Versus the same quarter one year earlier, revenue and operating cash flow were higher, yet free cash flow was lower and the margin weakened, primarily because capital expenditure increased more than operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$478.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$972.0M
Capital spending and related asset purchases.
FCF margin
14.2%
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 | $3.0B | $1.2B | $682.0M | $561.0M | 18.5% |
| 2024-12-31 | $3.4B | $1.2B | $3.8B | -$2.6B | -75.5% |
| 2025-03-31 | $4.2B | $1.4B | $1.0B | $421.0M | 10.1% |
| 2025-06-30 | $3.4B | $1.4B | $972.0M | $478.0M | 14.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 87.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 28.8% | 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.
Capital Expenditure Growth vs. Operating Cash Flow
Capital expenditure rose sequentially and was substantially higher than a year ago. While operating cash flow also increased, the pace of spending growth outpaced cash generation, causing free cash flow to fall year-over-year despite a quarterly improvement.
The stronger increase in capital expenditure compared to operating cash flow is the primary factor behind the year-over-year decline in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher both sequentially and year-over-year. Free cash flow improved from the prior quarter as capital expenditure was lower, but the free cash flow margin, while up sequentially, remained lower than a year earlier due to a larger increase in capital spending relative to operating cash flow.
Compared to the immediately preceding quarter, revenue was lower but operating cash flow was higher, leading to a higher free cash flow and an improved margin. Versus the same quarter one year earlier, revenue and operating cash flow were higher, yet free cash flow was lower and the margin weakened, primarily because capital expenditure increased more than operating cash flow.
Monitor the level of capital expenditure relative to operating cash flow, as its increase has compressed free cash flow margin year-over-year.