Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter after a negative prior quarter, but remained well below the level from a year ago. The improvement was driven by a shift from negative to positive operating cash flow, while capital expenditure was slightly higher than both comparison periods.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow improved from negative to positive sequentially, yet was significantly lower than the year-ago quarter. The resulting free cash flow margin turned positive after a negative prior quarter but was much lower than the year-ago margin.
- Compared to the prior quarter, free cash flow improved from negative to positive, driven by a substantial improvement in operating cash flow. Compared to the same quarter a year ago, free cash flow was lower, as operating cash flow was significantly lower despite slightly higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$880.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$12.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$36.1M
Cash generated by operations before capital spending.
CapEx
$23.9M
Capital spending and related asset purchases.
FCF margin
1.3%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $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% |
| 2025-06-30 | $964.5M | $36.1M | $23.9M | $12.2M | 1.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 8.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | 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 Recovery
Operating cash flow turned positive this quarter after being negative in the prior quarter, which was the primary factor behind the swing to positive free cash flow. This improvement occurred even as revenue was lower than the prior quarter.
The positive operating cash flow enabled free cash flow to turn positive, reversing the prior quarter's negative position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow improved from negative to positive sequentially, yet was significantly lower than the year-ago quarter. The resulting free cash flow margin turned positive after a negative prior quarter but was much lower than the year-ago margin.
Compared to the prior quarter, free cash flow improved from negative to positive, driven by a substantial improvement in operating cash flow. Compared to the same quarter a year ago, free cash flow was lower, as operating cash flow was significantly lower despite slightly higher revenue.
Monitor whether operating cash flow can sustain its positive level in the coming quarter, given its sharp decline from the year-ago period.