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 large operating cash outflow that outweighed a moderate capital expenditure. Revenue was lower than the prior quarter but slightly higher than the same quarter last year.
- Revenue was lower than the previous quarter, and operating cash flow shifted from a large inflow to a significant outflow, resulting in a negative free cash flow margin. Capital expenditure was slightly higher than a year ago but lower than the prior quarter.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all weakened sharply, with free cash flow margin turning from strongly positive to negative. Versus the same quarter last year, revenue improved modestly, but operating cash flow and free cash flow deteriorated further, and the margin became more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$958.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$89.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$73.0M
Cash generated by operations before capital spending.
CapEx
$16.4M
Capital spending and related asset purchases.
FCF margin
-8.8%
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 | $825.3M | $112.7M | $22.5M | $90.1M | 10.9% |
| 2024-09-30 | $1.3B | -$90.5M | $22.8M | -$113.4M | -8.6% |
| 2024-12-31 | $1.8B | $1.1B | $24.4M | $1.1B | 58.6% |
| 2025-03-31 | $1.0B | -$73.0M | $16.4M | -$89.4M | -8.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -59.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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.
Operating Cash Flow Swing
Operating cash flow moved from a large positive amount in the prior quarter to a negative amount this quarter, which was the strongest observable driver of the free cash flow decline. This shift occurred despite revenue being lower than the prior quarter.
The negative operating cash flow directly caused free cash flow to turn negative, reversing the strong positive position of the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the previous quarter, and operating cash flow shifted from a large inflow to a significant outflow, resulting in a negative free cash flow margin. Capital expenditure was slightly higher than a year ago but lower than the prior quarter.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all weakened sharply, with free cash flow margin turning from strongly positive to negative. Versus the same quarter last year, revenue improved modestly, but operating cash flow and free cash flow deteriorated further, and the margin became more negative.
Monitor whether operating cash flow can return to positive levels in the coming quarter, as it is the primary driver of free cash flow.