Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from both the prior quarter and the same quarter last year. Operating cash flow turned negative, leading to a negative free cash flow margin that improved from the prior quarter but weakened significantly from a year ago.
- Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow was negative, and after capital expenditure, free cash flow was also negative, resulting in a negative free cash flow margin.
- Compared to the prior quarter, revenue was lower, operating cash flow was less negative, capital expenditure was lower, and free cash flow was less negative, with an improved free cash flow margin. Compared to the same quarter last year, revenue was lower, operating cash flow turned from positive to negative, capital expenditure was lower, and free cash flow turned from positive to negative, with a weakened free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$666.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$87.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$50.1M
Cash generated by operations before capital spending.
CapEx
$37.5M
Capital spending and related asset purchases.
FCF margin
-4.1%
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 | $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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -57.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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.
Operating Cash Flow Turned Negative
Operating cash flow was negative in the current quarter, compared to positive in the same quarter last year. The filing context notes that for the six-month period, higher payments for incentive compensation and income tax payments contributed to increased net cash used in operating activities.
The negative operating cash flow drove free cash flow to a negative position, reversing the positive free cash flow from a year ago.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow was negative, and after capital expenditure, free cash flow was also negative, resulting in a negative free cash flow margin.
Compared to the prior quarter, revenue was lower, operating cash flow was less negative, capital expenditure was lower, and free cash flow was less negative, with an improved free cash flow margin. Compared to the same quarter last year, revenue was lower, operating cash flow turned from positive to negative, capital expenditure was lower, and free cash flow turned from positive to negative, with a weakened free cash flow margin.
Monitor the trajectory of operating cash flow, which turned negative in the current quarter after being positive a year ago.