Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow turned sharply negative as operating cash flow reversed from positive to negative, while capital expenditure remained relatively stable. Revenue increased compared to both the prior quarter and the same quarter last year, but the free cash flow margin weakened significantly.
- Revenue was higher than in both the immediately preceding quarter and the same quarter one year earlier. However, operating cash flow turned negative, leading to a negative free cash flow and a severely weakened free cash flow margin of negative seventeen point two percent.
- Compared to the prior quarter, revenue improved while operating cash flow decreased from positive to negative, free cash flow declined from near zero to a large negative figure, and the margin worsened substantially. Versus the same quarter last year, revenue was higher but operating cash flow, free cash flow, and margin all weakened considerably.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$176.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$114.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$91.7M
Cash generated by operations before capital spending.
CapEx
$23.0M
Capital spending and related asset purchases.
FCF margin
-17.2%
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 | $544.3M | $91.3M | $26.5M | $64.8M | 11.9% |
| 2024-12-31 | $575.1M | $250.2M | $24.8M | $225.4M | 39.2% |
| 2025-03-31 | $603.6M | $25.8M | $24.9M | $932000 | 0.2% |
| 2025-06-30 | $668.5M | -$91.7M | $23.0M | -$114.7M | -17.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -317.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.4B | 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 turned from positive in the prior quarter and the year-ago quarter to negative in the current quarter, despite higher revenue. This reversal is the strongest observable driver behind the negative free cash flow.
The negative operating cash flow completely offset revenue growth, resulting in a free cash flow margin that worsened from slightly positive to negative seventeen point two percent.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than in both the immediately preceding quarter and the same quarter one year earlier. However, operating cash flow turned negative, leading to a negative free cash flow and a severely weakened free cash flow margin of negative seventeen point two percent.
Compared to the prior quarter, revenue improved while operating cash flow decreased from positive to negative, free cash flow declined from near zero to a large negative figure, and the margin worsened substantially. Versus the same quarter last year, revenue was higher but operating cash flow, free cash flow, and margin all weakened considerably.
The shift in operating cash flow from positive to negative is the concrete item to monitor, as it drove the large negative free cash flow.