Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative this quarter, driven by a significant decline in operating cash flow despite higher revenue. Capital expenditure remained elevated, further straining cash generation.
- Revenue increased, but operating cash flow fell substantially, resulting in a negative free cash flow margin. Capital expenditure, though lower than the prior quarter, still exceeded operating cash flow, leading to a cash deficit.
- Compared to the prior quarter, free cash flow worsened from near break-even to a larger deficit, as operating cash flow dropped while capital expenditure decreased only modestly. Versus the same quarter last year, free cash flow swung from positive to negative, with operating cash flow declining and capital expenditure rising.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$73.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$58.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$46.0M
Cash generated by operations before capital spending.
CapEx
$103.9M
Capital spending and related asset purchases.
FCF margin
-3.7%
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 | $1.4B | $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% |
| 2025-09-30 | $1.6B | $46.0M | $103.9M | -$58.0M | -3.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -25.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Working capital buildup
Accounts receivable and inventories increased significantly from the prior quarter, outpacing the rise in accounts payable and reducing operating cash flow.
This working capital investment absorbed cash that would otherwise have supported free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, but operating cash flow fell substantially, resulting in a negative free cash flow margin. Capital expenditure, though lower than the prior quarter, still exceeded operating cash flow, leading to a cash deficit.
Compared to the prior quarter, free cash flow worsened from near break-even to a larger deficit, as operating cash flow dropped while capital expenditure decreased only modestly. Versus the same quarter last year, free cash flow swung from positive to negative, with operating cash flow declining and capital expenditure rising.
Monitor the trajectory of accounts receivable and inventory levels, as their growth consumed cash this quarter.