Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved sequentially and was relatively stable versus the prior year. However, operating cash flow turned negative, resulting in negative free cash flow for the quarter.
- Despite higher revenue, operating cash flow fell sharply into negative territory due to cash outflows exceeding inflows from operations. This, combined with capital expenditures, produced a negative free cash flow and a negative margin.
- Compared to the preceding quarter, revenue increased while operating cash flow weakened significantly and free cash flow turned from strongly positive to negative. Relative to the same quarter one year earlier, revenue was roughly stable but operating cash flow and free cash flow were markedly lower.
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
-$234.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$130.0M
Cash generated by operations before capital spending.
CapEx
$104.0M
Capital spending and related asset purchases.
FCF margin
-6.3%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $5.1B | -$362.0M | $74.0M | -$436.0M | -8.6% |
| 2025-03-31 | $4.4B | $2.0B | $74.0M | $1.9B | 44.4% |
| 2025-06-30 | $3.3B | $1.5B | $119.0M | $1.4B | 42.4% |
| 2025-09-30 | $3.7B | -$130.0M | $104.0M | -$234.0M | -6.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -38.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | 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 was the substantial decline in operating cash flow from a large positive in the prior quarter to a negative figure. Capital expenditure remained relatively stable, meaning free cash flow was almost entirely driven by the operating cash flow movement.
The shift in operating cash flow directly caused free cash flow to turn negative, reversing the strong positive generation seen in the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow fell sharply into negative territory due to cash outflows exceeding inflows from operations. This, combined with capital expenditures, produced a negative free cash flow and a negative margin.
Compared to the preceding quarter, revenue increased while operating cash flow weakened significantly and free cash flow turned from strongly positive to negative. Relative to the same quarter one year earlier, revenue was roughly stable but operating cash flow and free cash flow were markedly lower.
Monitor whether operating cash flow recovers to positive territory in coming quarters, as the current negative level drives cash conversion weakness.