Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow turned negative, driven by capital expenditure exceeding operating cash flow.
- Operating cash flow as a proportion of revenue was lower than the prior quarter and the year-ago quarter, while capital expenditure was higher than both comparison periods. The resulting free cash flow margin declined to negative, reflecting that operating cash flow did not fully cover capital spending.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow was lower, capital expenditure was lower, and free cash flow shifted from positive to negative. Versus the same quarter one year earlier, revenue was higher, operating cash flow was lower, capital expenditure was higher, and free cash flow declined from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$47.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$5.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$68.2M
Cash generated by operations before capital spending.
CapEx
$73.7M
Capital spending and related asset purchases.
FCF margin
-0.7%
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 | $709.2M | $95.0M | $69.4M | $25.6M | 3.6% |
| 2025-03-31 | $732.0M | $53.0M | $54.0M | -$1.0M | -0.1% |
| 2025-06-30 | $781.3M | $146.7M | $118.5M | $28.2M | 3.6% |
| 2025-09-30 | $833.6M | $68.2M | $73.7M | -$5.5M | -0.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 17.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $935.3M | 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
In the current quarter, capital expenditure exceeded operating cash flow, resulting in negative free cash flow. This contrasts with both the prior quarter and the year-ago quarter, where operating cash flow covered capital spending. The filing notes construction commitments for a campus expansion that are expected to require material cash outflows in 2025 and 2026.
Free cash flow turned negative even as revenue grew, reflecting elevated capital spending relative to cash from operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the prior quarter and the year-ago quarter, while capital expenditure was higher than both comparison periods. The resulting free cash flow margin declined to negative, reflecting that operating cash flow did not fully cover capital spending.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow was lower, capital expenditure was lower, and free cash flow shifted from positive to negative. Versus the same quarter one year earlier, revenue was higher, operating cash flow was lower, capital expenditure was higher, and free cash flow declined from positive to negative.
Monitor whether capital expenditure levels moderate relative to operating cash flow in future quarters.