Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative this quarter, driven by a sharp decline in operating cash flow despite lower capital expenditure. Revenue improved from the prior quarter but remained below the year-ago level.
- Operating cash flow was negative, resulting in a negative free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter, but the decline in operating cash flow more than offset that reduction.
- Compared to the prior quarter, operating cash flow weakened significantly, turning from positive to negative, and free cash flow also worsened. Versus the same quarter last year, operating cash flow was lower, while free cash flow was slightly improved due to much lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$187.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$128.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$9.0M
Cash generated by operations before capital spending.
CapEx
$119.6M
Capital spending and related asset purchases.
FCF margin
-9.7%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $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% |
| 2025-06-30 | $1.3B | -$9.0M | $119.6M | -$128.7M | -9.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -561.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.8B | 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 Decline
Operating cash flow dropped from a positive amount in the prior quarter to negative this quarter, which was the primary factor behind the negative free cash flow. Revenue increased sequentially, but cash generation did not follow.
The negative operating cash flow fully consumed the benefit of lower capital expenditure, resulting in a free cash flow deficit.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, resulting in a negative free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter, but the decline in operating cash flow more than offset that reduction.
Compared to the prior quarter, operating cash flow weakened significantly, turning from positive to negative, and free cash flow also worsened. Versus the same quarter last year, operating cash flow was lower, while free cash flow was slightly improved due to much lower capital expenditure.
Monitor whether operating cash flow can return to positive levels in the coming quarter.