Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned strongly positive this quarter, driven by a large swing in operating cash flow. Revenue declined slightly from the prior quarter and more notably from a year ago, but cash generation improved significantly.
- Operating cash flow rose sharply versus both the prior quarter and the year-ago quarter, while capital expenditure decreased, resulting in a positive free cash flow margin. The conversion from revenue to free cash flow strengthened markedly compared to the negative margins in the preceding and year-ago periods.
- Compared to the immediately preceding quarter, revenue was slightly lower but operating cash flow improved from negative to positive, and free cash flow turned from a deficit to a surplus. Versus the same quarter one year earlier, revenue was lower, yet operating cash flow and free cash flow both improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$142.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$364.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$547.2M
Cash generated by operations before capital spending.
CapEx
$182.6M
Capital spending and related asset purchases.
FCF margin
33.9%
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 | $1.4B | $367.7M | $451.6M | -$83.9M | -5.9% |
| 2024-09-30 | $1.4B | $227.1M | $303.1M | -$76.0M | -5.6% |
| 2024-12-31 | $1.2B | -$4.4M | $342.8M | -$347.2M | -28.2% |
| 2025-03-31 | $1.1B | $547.2M | $182.6M | $364.6M | 33.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 881.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Reversal
Operating cash flow shifted from a negative amount in the prior quarter and a small positive a year ago to a substantial positive this quarter. This was the strongest observable driver behind the free cash flow improvement.
The swing in operating cash flow was the primary factor turning free cash flow positive.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose sharply versus both the prior quarter and the year-ago quarter, while capital expenditure decreased, resulting in a positive free cash flow margin. The conversion from revenue to free cash flow strengthened markedly compared to the negative margins in the preceding and year-ago periods.
Compared to the immediately preceding quarter, revenue was slightly lower but operating cash flow improved from negative to positive, and free cash flow turned from a deficit to a surplus. Versus the same quarter one year earlier, revenue was lower, yet operating cash flow and free cash flow both improved from negative to positive.
Monitor whether operating cash flow can sustain its positive level given the lower revenue base.