Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter reported negative revenue, while operating cash flow and free cash flow remained positive, resulting in a negative free cash flow margin. The company generated substantial cash from operations despite the unusual revenue figure.
- The negative revenue combined with positive operating cash flow indicates a strong cash conversion from non-revenue sources, such as working capital changes. Capital expenditure was modest relative to operating cash flow, supporting positive free cash flow despite the margin being negative.
- Compared to the preceding quarter, revenue turned negative, operating cash flow and free cash flow were lower, and the free cash flow margin shifted from positive to negative. Compared to the same quarter one year earlier, revenue also turned negative, but operating cash flow and free cash flow were higher, while the margin turned negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$402.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$468.5M
Cash generated by operations before capital spending.
CapEx
$66.1M
Capital spending and related asset purchases.
FCF margin
-8.7%
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 | $1.8B | -$88.0M | $22.2M | -$110.2M | -6.0% |
| 2025-06-30 | $2.2B | $252.5M | $31.3M | $221.2M | 10.2% |
| 2025-09-30 | $2.5B | $553.3M | $35.3M | $517.9M | 21.1% |
| 2025-12-31 | -$4.6B | $468.5M | $66.1M | $402.4M | -8.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 121.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | -1.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | $836.7M | 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 Strength
Operating cash flow remained high despite negative revenue, supported by the company's working capital-intensive model as noted in the filing. The business does not require significant long-term fixed assets, with capital primarily deployed in working capital for project costs.
This strength enabled positive free cash flow even when revenue was negative, highlighting the company's ability to convert working capital into cash.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The negative revenue combined with positive operating cash flow indicates a strong cash conversion from non-revenue sources, such as working capital changes. Capital expenditure was modest relative to operating cash flow, supporting positive free cash flow despite the margin being negative.
Compared to the preceding quarter, revenue turned negative, operating cash flow and free cash flow were lower, and the free cash flow margin shifted from positive to negative. Compared to the same quarter one year earlier, revenue also turned negative, but operating cash flow and free cash flow were higher, while the margin turned negative.
Monitor future revenue trends and their effect on operating cash flow, as the current quarter's cash generation may be influenced by temporary working capital dynamics.