Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the first quarter of fiscal 2025, the company reported negative free cash flow due to operating cash flow turning negative. Revenue remained stable compared to the prior quarter but operating cash flow weakened significantly.
- Revenue was flat sequentially, but operating cash flow moved from a positive to a negative figure, resulting in negative free cash flow and a negative margin. Capital expenditure was slightly higher than the prior quarter and the year-ago period, but the cash conversion was primarily driven by the operating cash flow decline.
- Compared to the immediately preceding quarter, free cash flow turned from a positive to a negative figure, and the margin weakened. Compared to the same quarter a year earlier, both operating cash flow and free cash flow were lower, although revenue was higher.
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
-$118.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$74.2M
Cash generated by operations before capital spending.
CapEx
$44.8M
Capital spending and related asset purchases.
FCF margin
-11.8%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $975.7M | $540.9M | $44.1M | $496.8M | 50.9% |
| 2024-09-30 | $1.0B | $400.8M | $45.8M | $355.0M | 34.5% |
| 2024-12-31 | $1.0B | $648.7M | $44.1M | $604.6M | 58.4% |
| 2025-03-31 | $1.0B | -$74.2M | $44.8M | -$118.9M | -11.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -48.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.6B | 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
Operating cash flow shifted from a substantial positive amount in the prior quarter to a negative amount, driving the free cash flow negative. This reversal was also significant compared to the year-ago quarter.
The company's ability to generate cash from operations has deteriorated sharply, resulting in negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was flat sequentially, but operating cash flow moved from a positive to a negative figure, resulting in negative free cash flow and a negative margin. Capital expenditure was slightly higher than the prior quarter and the year-ago period, but the cash conversion was primarily driven by the operating cash flow decline.
Compared to the immediately preceding quarter, free cash flow turned from a positive to a negative figure, and the margin weakened. Compared to the same quarter a year earlier, both operating cash flow and free cash flow were lower, although revenue was higher.
Monitor the impact of fuel price and fuel-price spread volatility on revenue, as noted in the filing, which may affect cash flow.