Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow increased from both the prior quarter and the same quarter last year, but free cash flow turned negative sequentially due to a significant rise in capital expenditure. Compared with the year-ago period, free cash flow improved markedly as capital spending was lower.
- Operating cash flow as a percentage of revenue improved from the prior quarter and from the year-ago period, yet the free cash flow margin turned negative sequentially because capital expenditure rose sharply relative to operating cash flow.
- Compared with the prior quarter, free cash flow shifted from positive to negative, driven by a higher capital expenditure that more than offset the higher operating cash flow. Relative to the same quarter one year ago, free cash flow was less negative as capital expenditure was lower and operating cash flow was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$474.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$910.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$2.5B
Capital spending and related asset purchases.
FCF margin
-23.7%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-09-30 | $3.5B | $1.4B | $954.0M | $485.0M | 13.9% |
| 2025-12-31 | $3.8B | $1.6B | $2.5B | -$910.0M | -23.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -124.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 64.7% | 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 spike
Capital expenditure increased substantially from the prior quarter, causing free cash flow to turn negative despite higher operating cash flow. Compared with the year-ago quarter, capital spending was lower, which contributed to the improvement in free cash flow.
The change in capital expenditure was the most observable factor behind the sequential shift in free cash flow from positive to negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue improved from the prior quarter and from the year-ago period, yet the free cash flow margin turned negative sequentially because capital expenditure rose sharply relative to operating cash flow.
Compared with the prior quarter, free cash flow shifted from positive to negative, driven by a higher capital expenditure that more than offset the higher operating cash flow. Relative to the same quarter one year ago, free cash flow was less negative as capital expenditure was lower and operating cash flow was higher.
Monitor the trend in capital expenditure relative to operating cash flow, as the current quarter’s elevated spending level significantly affected free cash flow.