Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter and the year-ago quarter, while operating cash flow turned negative, resulting in a free cash flow deficit. The free cash flow margin weakened significantly compared to both the immediate preceding quarter and the same period last year.
- With revenue declining modestly, operating cash flow swung from positive to negative, while capital expenditure was reduced compared to the prior quarter. The combination of negative operating cash flow and ongoing capital spending produced a negative free cash flow and a negative free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all deteriorated. Relative to the same quarter one year earlier, revenue was lower, operating cash flow weakened sharply, free cash flow turned negative, and the margin declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$165.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$3.0M
Cash generated by operations before capital spending.
CapEx
$162.0M
Capital spending and related asset purchases.
FCF margin
-2.0%
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 | $8.8B | -$851.0M | $240.0M | -$1.1B | -12.4% |
| 2024-09-30 | $8.5B | $640.0M | $259.0M | $381.0M | 4.5% |
| 2024-12-31 | $8.4B | $1.4B | $540.0M | $882.0M | 10.4% |
| 2025-03-31 | $8.2B | -$3.0M | $162.0M | -$165.0M | -2.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -19.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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 Reversal
The most significant observable driver is the sharp decline in operating cash flow, which dropped from a positive level in both the prior quarter and the year-ago quarter to a negative amount in the current quarter. This change, combined with ongoing capital expenditure, directly caused free cash flow to turn negative.
The negative operating cash flow more than offset the reduction in capital spending, resulting in a free cash flow deficit and a negative margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue declining modestly, operating cash flow swung from positive to negative, while capital expenditure was reduced compared to the prior quarter. The combination of negative operating cash flow and ongoing capital spending produced a negative free cash flow and a negative free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all deteriorated. Relative to the same quarter one year earlier, revenue was lower, operating cash flow weakened sharply, free cash flow turned negative, and the margin declined.
Monitor the trajectory of operating cash flow, as it shifted from positive to negative in the current quarter.