Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company's free cash flow turned negative in the current quarter, primarily due to operating cash flow moving from positive to negative. Both revenue and cash generation weakened compared to the prior quarter and the same quarter last year.
- Revenue was higher than a year ago but slightly lower than the prior quarter. Operating cash flow turned negative, leading to negative free cash flow after capital expenditures, which were lower than both comparison periods. The free cash flow margin became negative, reflecting a sharp decline in cash conversion efficiency.
- Compared to the prior quarter, revenue was slightly lower while operating cash flow and free cash flow weakened significantly from positive to negative. Compared to the same quarter last year, revenue was higher but operating cash flow and free cash flow both declined sharply.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$506.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$110.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$88.0M
Cash generated by operations before capital spending.
CapEx
$22.2M
Capital spending and related asset purchases.
FCF margin
-6.0%
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 | $1.8B | $189.9M | $23.4M | $166.5M | 9.2% |
| 2024-09-30 | $1.8B | $302.2M | $22.1M | $280.1M | 15.5% |
| 2024-12-31 | $1.9B | $210.5M | $40.7M | $169.8M | 9.1% |
| 2025-03-31 | $1.8B | -$88.0M | $22.2M | -$110.2M | -6.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -65.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | $136.9M | 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 Turns Negative
The most observable driver is the sharp reversal in operating cash flow from a positive to a negative figure, which directly caused free cash flow to turn negative despite lower capital expenditure.
If operating cash flow remains negative, the company may face pressure on liquidity and its ability to fund ongoing operations without external financing.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than a year ago but slightly lower than the prior quarter. Operating cash flow turned negative, leading to negative free cash flow after capital expenditures, which were lower than both comparison periods. The free cash flow margin became negative, reflecting a sharp decline in cash conversion efficiency.
Compared to the prior quarter, revenue was slightly lower while operating cash flow and free cash flow weakened significantly from positive to negative. Compared to the same quarter last year, revenue was higher but operating cash flow and free cash flow both declined sharply.
Monitor whether operating cash flow can return to positive levels in the coming quarters, as the current negative swing is a notable shift.