Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Current quarter revenue was higher than both the prior quarter and the year-ago quarter, but operating cash flow turned negative, leading to a negative free cash flow margin. This represents a significant weakening from the positive margins in both comparison periods.
- Revenue increased, but operating cash flow moved from positive to negative and capital expenditure rose sequentially, causing free cash flow to turn negative. The free cash flow margin became negative, indicating a substantially weakened cash conversion.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were much lower, resulting in a lower margin. Compared to the same quarter one year earlier, revenue was slightly higher, yet operating cash flow and free cash flow were also lower, and the margin weakened from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$911.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$51.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$20.7M
Cash generated by operations before capital spending.
CapEx
$31.2M
Capital spending and related asset purchases.
FCF margin
-2.2%
The share of revenue converted into free cash flow.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | -$20.7M | Cash generated by operations before capital spending. |
| Capital expenditures | $31.2M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | -$51.9M | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $2.0B | $819.8M | $13.1M | $806.7M | 39.7% |
| 2022-09-30 | $1.9B | $866.4M | $34.7M | $831.7M | 42.9% |
| 2022-12-31 | $2.0B | -$256.3M | $27.4M | -$283.7M | -14.4% |
| 2023-03-31 | $1.9B | -$73.3M | $15.4M | -$88.7M | -4.6% |
| 2023-06-30 | $2.0B | $654.3M | $78.7M | $575.6M | 29.2% |
| 2023-09-30 | $2.0B | $764.5M | $27.3M | $737.2M | 37.1% |
| 2023-12-31 | $2.0B | -$251.9M | $19.5M | -$271.4M | -13.6% |
| 2024-03-31 | $2.2B | $136.6M | $41.7M | $94.9M | 4.4% |
| 2024-06-30 | $2.1B | $528.4M | $46.1M | $482.3M | 22.7% |
| 2024-09-30 | $2.2B | $558.2M | $69.8M | $488.4M | 22.1% |
| 2024-12-31 | $2.3B | -$145.2M | $71.8M | -$217.0M | -9.6% |
| 2025-03-31 | $2.1B | -$50.1M | $37.5M | -$87.6M | -4.1% |
| 2025-06-30 | $2.1B | $1.3B | $14.0M | $1.3B | 61.4% |
| 2025-09-30 | $2.3B | -$20.7M | $31.2M | -$51.9M | -2.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -44.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | 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.
Negative operating cash flow
The current quarter's operating cash flow turned negative, contrasting with strong positive figures in both the prior quarter and the year-ago period. The filing notes that for the full fiscal year, operating cash flows increased due to higher net income and other adjustments, but the quarterly figure deviated sharply.
This negative operating cash flow drove free cash flow into negative territory, reversing prior positive cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, but operating cash flow moved from positive to negative and capital expenditure rose sequentially, causing free cash flow to turn negative. The free cash flow margin became negative, indicating a substantially weakened cash conversion.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were much lower, resulting in a lower margin. Compared to the same quarter one year earlier, revenue was slightly higher, yet operating cash flow and free cash flow were also lower, and the margin weakened from positive to negative.
Monitor the trajectory of operating cash flow, as it shifted from a large positive to a negative value in the current quarter.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |