Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow turned positive compared to the same quarter last year, though it decreased sharply from the prior quarter. The free cash flow margin improved from negative to low single digits but weakened sequentially.
- Revenue was slightly lower than the previous quarter but higher than the same quarter last year. Operating cash flow turned positive from negative year-over-year, but declined significantly from the prior quarter. Capital expenditure was lower than the previous quarter and higher than a year ago. Free cash flow and its margin followed the same pattern.
- Compared to the immediately preceding quarter, free cash flow and margin weakened. Compared to the same quarter one year earlier, free cash flow and margin improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$36.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$180.0M
Cash generated by operations before capital spending.
CapEx
$143.3M
Capital spending and related asset purchases.
FCF margin
1.1%
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 | $3.2B | $798.8M | $124.7M | $674.1M | 21.2% |
| 2024-09-30 | $3.3B | $810.4M | $139.0M | $671.4M | 20.6% |
| 2024-12-31 | $3.3B | $547.6M | $170.7M | $377.0M | 11.4% |
| 2025-03-31 | $3.2B | $180.0M | $143.3M | $36.8M | 1.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 22.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.4% | 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 turnaround
Operating cash flow turned positive from negative a year ago, supported by a reduction in working capital outflows as noted in the filing.
This improvement was the primary factor behind the positive free cash flow in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the previous quarter but higher than the same quarter last year. Operating cash flow turned positive from negative year-over-year, but declined significantly from the prior quarter. Capital expenditure was lower than the previous quarter and higher than a year ago. Free cash flow and its margin followed the same pattern.
Compared to the immediately preceding quarter, free cash flow and margin weakened. Compared to the same quarter one year earlier, free cash flow and margin improved from negative to positive.
Monitor the trajectory of working capital changes, which had a substantial impact on operating cash flow this quarter.