Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter experienced a sharp weakening in cash generation, as operating cash flow turned negative and free cash flow deepened its deficit. Revenue was higher than a year earlier but lower than the prior quarter, while margins declined markedly.
- Revenue was slightly above the year-ago level but below the previous quarter. Operating cash flow shifted from positive to a significant outflow, resulting in a large negative free cash flow despite lower capital spending.
- Compared to the prior quarter, all cash flow measures worsened, with operating cash flow and free cash flow moving from positive to negative. Versus the same quarter a year ago, free cash flow and margin also deteriorated, even as revenue improved modestly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$976.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$813.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$608.0M
Cash generated by operations before capital spending.
CapEx
$206.0M
Capital spending and related asset purchases.
FCF margin
-96.4%
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 | $1.0B | $193.0M | $365.2M | -$172.1M | -17.0% |
| 2024-09-30 | $887.7M | -$53.7M | $433.9M | -$487.7M | -54.9% |
| 2024-12-31 | $1.5B | $811.0M | $313.5M | $497.5M | 32.9% |
| 2025-03-31 | $844.6M | -$608.0M | $206.0M | -$813.9M | -96.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -388.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 24.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | $312.5M | 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 Turned Negative
Operating cash flow shifted from a surplus in the prior quarter to a substantial deficit, overwhelming the lower capital expenditure and causing a steep negative free cash flow. Management noted in the filing that existing cash, marketable securities, and expected project cash flows should support liquidity for the next year.
This sudden cash outflow pressures near-term liquidity, though management expects sufficient resources from internal and credit sources.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly above the year-ago level but below the previous quarter. Operating cash flow shifted from positive to a significant outflow, resulting in a large negative free cash flow despite lower capital spending.
Compared to the prior quarter, all cash flow measures worsened, with operating cash flow and free cash flow moving from positive to negative. Versus the same quarter a year ago, free cash flow and margin also deteriorated, even as revenue improved modestly.
Monitor the trajectory of operating cash flow, as its reversal to a large outflow was the main driver of the free cash shortfall.