Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative for the quarter as operating cash flow was negative and capital expenditure was positive. The free cash flow margin improved compared to the same quarter a year earlier but weakened from the prior quarter.
- Revenue in the current quarter was slightly higher than the prior quarter but slightly lower than a year ago. Operating cash flow was negative, capital expenditure was lower than both comparison periods, and free cash flow was negative, resulting in a negative free cash flow margin.
- Compared to the prior quarter, operating cash flow swung from a large positive to a negative, and free cash flow turned from a large positive to a negative, causing a sharp decline in margin. Compared to the same quarter last year, operating cash flow was less negative, capital expenditure was lower, and free cash flow was less negative, leading to an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$2.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$2.1B
Cash generated by operations before capital spending.
CapEx
$94.0M
Capital spending and related asset purchases.
FCF margin
-49.9%
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 | $6.1B | $451.0M | $114.0M | $337.0M | 5.5% |
| 2024-09-30 | $2.3B | $130.0M | $154.0M | -$24.0M | -1.0% |
| 2024-12-31 | $4.0B | $4.2B | $181.0M | $4.0B | 100.4% |
| 2025-03-31 | $4.4B | -$2.1B | $94.0M | -$2.2B | -49.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -337.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Narrower operating cash deficit
Operating cash flow, though still negative, was less negative than in the same quarter last year. Combined with lower capital expenditure, free cash flow improved on a year-over-year basis.
The free cash flow margin rose from a negative level to a less negative level compared with the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue in the current quarter was slightly higher than the prior quarter but slightly lower than a year ago. Operating cash flow was negative, capital expenditure was lower than both comparison periods, and free cash flow was negative, resulting in a negative free cash flow margin.
Compared to the prior quarter, operating cash flow swung from a large positive to a negative, and free cash flow turned from a large positive to a negative, causing a sharp decline in margin. Compared to the same quarter last year, operating cash flow was less negative, capital expenditure was lower, and free cash flow was less negative, leading to an improved margin.
Monitor the trajectory of operating cash flow, which turned from a large positive in the prior quarter to a large negative in the current quarter.