Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive year over year but weakened significantly from the prior quarter. The cash conversion rate remains thin despite higher revenue.
- Revenue rose sequentially, yet operating cash flow dropped sharply, causing free cash flow to contract. Capital expenditure also declined, but not enough to offset the operating cash flow shortfall, resulting in a much lower free cash flow margin.
- Compared to the same quarter a year ago, free cash flow improved from negative to positive and margin turned favorable. However, versus the immediate prior quarter, both operating cash flow and free cash flow weakened, and margin decreased substantially.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$197.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$8.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$94.0M
Cash generated by operations before capital spending.
CapEx
$86.0M
Capital spending and related asset purchases.
FCF margin
0.2%
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $4.7B | $419.0M | $145.0M | $274.0M | 5.9% |
| 2024-06-30 | $4.8B | -$119.0M | $64.0M | -$183.0M | -3.8% |
| 2025-03-31 | $4.8B | $250.0M | $152.0M | $98.0M | 2.1% |
| 2025-06-30 | $5.0B | $94.0M | $86.0M | $8.0M | 0.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Operating Cash Flow Contraction
Operating cash flow fell sharply from the prior quarter despite higher revenue, marking the strongest observable negative driver for free cash flow. Capital expenditure decreased, but free cash flow still declined due to the operating cash flow shortfall.
The significant drop in operating cash flow constrained free cash flow generation even with lower capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose sequentially, yet operating cash flow dropped sharply, causing free cash flow to contract. Capital expenditure also declined, but not enough to offset the operating cash flow shortfall, resulting in a much lower free cash flow margin.
Compared to the same quarter a year ago, free cash flow improved from negative to positive and margin turned favorable. However, versus the immediate prior quarter, both operating cash flow and free cash flow weakened, and margin decreased substantially.
Monitor whether operating cash flow can recover from its sequential decline, as it is the primary determinant of free cash flow performance.