Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter, free cash flow turned negative as operating cash flow declined and capital expenditure rose, resulting in a negligible negative margin. Revenue was stable sequentially but higher than the prior year.
- Operating cash flow was insufficient to cover capital expenditure, leading to a slight free cash outflow. The free cash flow margin turned negative compared to positive margins in both comparison periods.
- Compared to the prior quarter, operating cash flow was lower and capital expenditure was higher, flipping free cash flow from positive to negative. Versus the same quarter last year, revenue was higher but operating cash flow was lower, and capital expenditure was higher, leading to a weaker free cash flow position.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$192.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$130.3M
Cash generated by operations before capital spending.
CapEx
$131.3M
Capital spending and related asset purchases.
FCF margin
-0.1%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $1.3B | $153.0M | $92.0M | $61.0M | 4.5% |
| 2024-12-31 | $1.4B | $187.4M | $105.7M | $81.7M | 5.7% |
| 2025-03-31 | $1.5B | $163.0M | $111.8M | $51.1M | 3.4% |
| 2025-06-30 | $1.5B | $130.3M | $131.3M | -$1.1M | -0.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital expenditure outpacing operating cash flow
Capital expenditure increased while operating cash flow decreased, causing free cash flow to turn negative.
The company's ability to generate positive free cash flow depends on either higher operating cash flow or lower capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was insufficient to cover capital expenditure, leading to a slight free cash outflow. The free cash flow margin turned negative compared to positive margins in both comparison periods.
Compared to the prior quarter, operating cash flow was lower and capital expenditure was higher, flipping free cash flow from positive to negative. Versus the same quarter last year, revenue was higher but operating cash flow was lower, and capital expenditure was higher, leading to a weaker free cash flow position.
Monitor the relationship between capital expenditure and operating cash flow, as the gap widened this quarter.