Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved substantially from both the prior quarter and the same quarter last year, though it remained negative. Revenue rose, and operating cash flow turned positive after a deeply negative prior quarter.
- The cash conversion cycle strengthened as operating cash flow moved from a large outflow to a positive inflow, while capital expenditure increased sequentially but decreased from the prior year. The free cash flow margin improved significantly but stayed in negative territory.
- Compared to the prior quarter, revenue and operating cash flow were higher, and free cash flow was much less negative. Versus the same quarter last year, revenue increased, operating cash flow was slightly lower, but free cash flow improved modestly as capital expenditure declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$942.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$138.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$149.6M
Cash generated by operations before capital spending.
CapEx
$288.1M
Capital spending and related asset purchases.
FCF margin
-12.6%
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 |
|---|---|---|---|---|---|
| 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% |
| 2025-06-30 | $1.1B | $149.6M | $288.1M | -$138.6M | -12.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -40.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 26.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | $546.9M | 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 Recovery
Operating cash flow rebounded sharply from a negative prior quarter, turning positive and driving the improvement in free cash flow.
This recovery was the primary factor behind the reduced free cash outflow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The cash conversion cycle strengthened as operating cash flow moved from a large outflow to a positive inflow, while capital expenditure increased sequentially but decreased from the prior year. The free cash flow margin improved significantly but stayed in negative territory.
Compared to the prior quarter, revenue and operating cash flow were higher, and free cash flow was much less negative. Versus the same quarter last year, revenue increased, operating cash flow was slightly lower, but free cash flow improved modestly as capital expenditure declined.
Monitor capital expenditure levels, which rose from the prior quarter and remain a significant use of cash.