Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased year over year, and free cash flow turned from negative to positive, but the free cash flow margin declined sharply from the previous quarter. The sequential comparison shows a significant reduction in operating cash flow despite a slight decrease in capital expenditure.
- Revenue was higher than the year-ago quarter but lower than the previous quarter. Operating cash flow and free cash flow improved from negative to positive year over year, but both fell substantially from the prior quarter, resulting in a much lower free cash flow margin.
- Compared to the previous quarter, all metrics weakened: revenue, operating cash flow, free cash flow, and margin were lower, while capital expenditure was slightly lower. Compared to the same quarter last year, revenue was higher, and operating cash flow and free cash flow improved from negative to positive, leading to a higher free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$27.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$42.3M
Cash generated by operations before capital spending.
CapEx
$15.2M
Capital spending and related asset purchases.
FCF margin
1.7%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $1.6B | $236.7M | $8.8M | $227.9M | 14.3% |
| 2025-03-31 | $1.8B | $360.4M | $11.5M | $348.9M | 19.3% |
| 2025-06-30 | $2.1B | $699.7M | $15.6M | $684.1M | 33.1% |
| 2025-09-30 | $1.6B | $42.3M | $15.2M | $27.1M | 1.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 16.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year cash flow improvement
Operating cash flow swung from negative to positive compared to the same quarter last year, enabling free cash flow to also turn positive. This reversal contrasted with the prior year's cash consumption.
This improvement provided positive free cash flow in the current quarter, reversing the negative free cash flow of the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the year-ago quarter but lower than the previous quarter. Operating cash flow and free cash flow improved from negative to positive year over year, but both fell substantially from the prior quarter, resulting in a much lower free cash flow margin.
Compared to the previous quarter, all metrics weakened: revenue, operating cash flow, free cash flow, and margin were lower, while capital expenditure was slightly lower. Compared to the same quarter last year, revenue was higher, and operating cash flow and free cash flow improved from negative to positive, leading to a higher free cash flow margin.
Monitor the magnitude of the sequential decline in free cash flow, as it fell from a large positive in the prior quarter to a much smaller positive.