Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, but operating cash flow decreased. Free cash flow and free cash flow margin weakened substantially due to a large increase in capital expenditure.
- The cash conversion from revenue to free cash flow declined, as operating cash flow was lower while capital expenditure rose sharply, resulting in a much lower free cash flow margin.
- Compared to the prior quarter, free cash flow and margin were significantly lower due to higher capital expenditure and lower operating cash flow. Versus the same quarter last year, free cash flow also declined, though capital expenditure was slightly lower but operating cash flow was also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$116.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$367.8M
Cash generated by operations before capital spending.
CapEx
$251.0M
Capital spending and related asset purchases.
FCF margin
343.6%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $30.9M | $481.4M | $117.1M | $364.3M | 1178.9% |
| 2025-06-30 | $32.0M | $543.9M | $180.7M | $363.2M | 1133.4% |
| 2025-09-30 | $32.5M | $457.1M | $12.9M | $444.2M | 1365.1% |
| 2025-12-31 | $34.0M | $367.8M | $251.0M | $116.8M | 343.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 40.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 738.5% | 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.
Capital Expenditure Surge
Capital expenditure increased substantially from the prior quarter, while also remaining at a level similar to the year-ago quarter. This was the primary observable factor behind the drop in free cash flow.
The higher capital expenditure reduced free cash flow significantly despite higher revenue, weakening the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The cash conversion from revenue to free cash flow declined, as operating cash flow was lower while capital expenditure rose sharply, resulting in a much lower free cash flow margin.
Compared to the prior quarter, free cash flow and margin were significantly lower due to higher capital expenditure and lower operating cash flow. Versus the same quarter last year, free cash flow also declined, though capital expenditure was slightly lower but operating cash flow was also lower.
Monitor the level of capital expenditure, as its significant increase this quarter weighed heavily on free cash flow.