Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company's free cash flow remained negative but improved compared to both the prior quarter and the same quarter last year, driven by a reduction in capital expenditure. Operating cash flow was lower than in both comparable periods, while revenue also declined sequentially.
- Cash conversion, measured by operating cash flow relative to revenue, weakened sequentially as operating cash flow declined more than revenue. Compared to the year-ago quarter, operating cash flow was lower, but capital expenditure also decreased.
- Compared to the prior quarter, free cash flow improved as capital expenditure decreased more than operating cash flow. Versus the same quarter one year earlier, free cash flow also improved, supported by lower capital expenditure despite a decline in operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$801.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$217.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$331.0M
Cash generated by operations before capital spending.
CapEx
$548.0M
Capital spending and related asset purchases.
FCF margin
-19.1%
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 | $1.1B | $345.0M | $670.0M | -$325.0M | -28.5% |
| 2024-09-30 | $1.3B | $679.0M | $683.0M | -$4.0M | -0.3% |
| 2024-12-31 | $1.2B | $639.0M | $894.0M | -$255.0M | -21.6% |
| 2025-03-31 | $1.1B | $331.0M | $548.0M | -$217.0M | -19.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -105.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 48.3% | 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 Reduction
The decrease in capital expenditure was the strongest observable factor behind the narrower free cash flow deficit, as it fell more than the decline in operating cash flow. However, the simultaneous drop in operating cash flow offset some of the benefit.
If capital expenditure remains at lower levels, free cash flow could continue to improve, but the decline in operating cash flow suggests that cash generation from operations may be under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion, measured by operating cash flow relative to revenue, weakened sequentially as operating cash flow declined more than revenue. Compared to the year-ago quarter, operating cash flow was lower, but capital expenditure also decreased.
Compared to the prior quarter, free cash flow improved as capital expenditure decreased more than operating cash flow. Versus the same quarter one year earlier, free cash flow also improved, supported by lower capital expenditure despite a decline in operating cash flow.
Monitor the trajectory of operating cash flow, as it declined sequentially and year-over-year even as free cash flow improved from lower capital spending.