Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's free cash flow was negative, with a sharp decline in cash conversion compared to the prior quarter. Operating cash flow turned significantly negative, and capital expenditure increased, resulting in a larger free cash flow deficit.
- Revenue was positive, but operating cash flow was negative, and capital expenditure further reduced cash, producing a deeply negative free cash flow and a negative free cash flow margin. The company's cash conversion was weak as operating cash outflows exceeded revenue.
- Compared to the immediately preceding quarter, revenue increased slightly, but operating cash flow turned more negative, and free cash flow margin weakened from negative to a deeper negative. Compared to the same quarter one year earlier, the year-ago quarter reported negative revenue, which distorts margin comparisons; however, absolute free cash flow was also negative and larger in magnitude, while the current quarter's deficit was smaller.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$536.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.1B
Cash generated by operations before capital spending.
CapEx
$406.0M
Capital spending and related asset purchases.
FCF margin
-36.8%
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 | $3.9B | $1.3B | $354.0M | $973.0M | 25.1% |
| 2024-12-31 | $13.5B | $1.1B | $489.0M | $564.0M | 4.2% |
| 2025-03-31 | $3.7B | -$285.0M | $310.0M | -$595.0M | -16.2% |
| 2025-06-30 | $4.0B | -$1.1B | $406.0M | -$1.5B | -36.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -417.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$944.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Deterioration in Operating Cash Flow
Operating cash flow shifted from a modest negative to a substantial negative, which is the most significant observable change in the cash flow profile. The filing notes that working capital increased due to higher borrowings in preparation for an acquisition and higher inventories, which may have contributed to the cash outflow.
The large negative operating cash flow drove a significantly higher free cash flow deficit compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was positive, but operating cash flow was negative, and capital expenditure further reduced cash, producing a deeply negative free cash flow and a negative free cash flow margin. The company's cash conversion was weak as operating cash outflows exceeded revenue.
Compared to the immediately preceding quarter, revenue increased slightly, but operating cash flow turned more negative, and free cash flow margin weakened from negative to a deeper negative. Compared to the same quarter one year earlier, the year-ago quarter reported negative revenue, which distorts margin comparisons; however, absolute free cash flow was also negative and larger in magnitude, while the current quarter's deficit was smaller.
Monitor the level of capital expenditure, which increased from the prior quarter and remains a notable cash outflow.