Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned deeply negative this quarter, driven by a large operating cash outflow that far exceeded capital spending. Revenue rose from both the prior quarter and the same quarter last year, but the cash conversion weakened sharply.
- Operating cash flow was negative, resulting in a negative free cash flow and a negative free cash flow margin, despite higher revenue. Capital expenditure was slightly lower than the prior quarter but higher than a year ago, yet the cash conversion was materially worse than both comparison periods.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were much lower, flipping from strongly positive to negative. Versus the same quarter one year earlier, revenue was higher while operating cash flow and free cash flow were lower, with the margin weakening from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$429.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$378.9M
Cash generated by operations before capital spending.
CapEx
$50.9M
Capital spending and related asset purchases.
FCF margin
-36.7%
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 | $1.0B | $648.7M | $44.1M | $604.6M | 58.4% |
| 2025-03-31 | $1.0B | -$74.2M | $44.8M | -$118.9M | -11.8% |
| 2025-06-30 | $1.1B | $1.1B | $52.6M | $1.1B | 98.7% |
| 2025-09-30 | $1.2B | -$378.9M | $50.9M | -$429.8M | -36.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -154.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.1B | 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 Swing
Operating cash flow shifted from strongly positive in the prior quarter and positive a year ago to negative this quarter. This change is the strongest observable driver of the free cash flow decline, as capital expenditure remained relatively stable.
The negative operating cash flow directly caused free cash flow to turn deeply negative, reversing the prior quarter's strong positive position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, resulting in a negative free cash flow and a negative free cash flow margin, despite higher revenue. Capital expenditure was slightly lower than the prior quarter but higher than a year ago, yet the cash conversion was materially worse than both comparison periods.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were much lower, flipping from strongly positive to negative. Versus the same quarter one year earlier, revenue was higher while operating cash flow and free cash flow were lower, with the margin weakening from positive to negative.
Monitor whether operating cash flow returns to positive levels in the next quarter, as the current negative swing is the primary driver of the free cash flow deficit.