Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than the prior quarter but lower than the year-ago quarter. Operating cash flow and free cash flow turned negative, resulting in a negative free cash flow margin that weakened compared to both periods.
- Operating cash flow was negative, while capital expenditure represented a cash outflow, leading to a negative free cash flow and a negative free cash flow margin. This contrasts with the prior quarter's positive operating cash flow and free cash flow.
- Compared to the prior quarter, revenue increased slightly but operating cash flow and free cash flow both weakened from positive to negative. Compared to the same quarter last year, revenue was lower and both operating cash flow and free cash flow were more negative, indicating a weakened performance.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$470.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$436.2M
Cash generated by operations before capital spending.
CapEx
$34.3M
Capital spending and related asset purchases.
FCF margin
-6.1%
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 | $10.0B | $698.3M | $62.0M | $636.3M | 6.4% |
| 2024-09-30 | $10.0B | $2.0B | $32.0M | $1.9B | 19.3% |
| 2024-12-31 | $7.6B | $646.7M | $13.3M | $633.4M | 8.3% |
| 2025-03-31 | $7.7B | -$436.2M | $34.3M | -$470.5M | -6.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -58.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | 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
The primary observable driver this quarter was the sharp change in operating cash flow, which moved from a positive figure in the prior quarter to a negative figure, and was also more negative than the year-ago quarter's operating cash flow.
This swing directly caused free cash flow to turn deeply negative and widened the free cash flow margin gap compared to both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, while capital expenditure represented a cash outflow, leading to a negative free cash flow and a negative free cash flow margin. This contrasts with the prior quarter's positive operating cash flow and free cash flow.
Compared to the prior quarter, revenue increased slightly but operating cash flow and free cash flow both weakened from positive to negative. Compared to the same quarter last year, revenue was lower and both operating cash flow and free cash flow were more negative, indicating a weakened performance.
Monitor the company's ability to generate positive operating cash flow, especially given the filing's discussion of risks related to mortgage financing availability and interest rate changes.