Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company reported negative free cash flow for the quarter, as operating cash flow turned negative despite a slight increase in revenue. Capital expenditure was lower than the previous quarter, but insufficient to offset the cash flow from operations shortfall.
- Cash conversion weakened significantly, with operating cash flow negative against positive revenue growth. The negative free cash flow margin reflected the shortfall in cash generation from operations, even as capital spending was reduced.
- Compared to the prior quarter, operating cash flow declined and free cash flow worsened from a modest negative to a larger deficit. Year over year, the change was more pronounced, as the same quarter last year had positive operating cash flow and free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$320.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$160.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$40.8M
Cash generated by operations before capital spending.
CapEx
$119.8M
Capital spending and related asset purchases.
FCF margin
-2.7%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $6.0B | $293.6M | $143.6M | $150.1M | 2.5% |
| 2024-09-30 | $6.0B | $484.3M | $126.3M | $358.0M | 6.0% |
| 2024-12-31 | $5.8B | $155.0M | $181.7M | -$26.7M | -0.5% |
| 2025-03-31 | $5.9B | -$40.8M | $119.8M | -$160.7M | -2.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -82.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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 Turned Negative
Operating cash flow shifted from positive in both the prior quarter and the year-ago quarter to negative this quarter. This decline was the primary driver of the negative free cash flow, even though capital expenditure decreased from the prior quarter.
The negative operating cash flow may increase reliance on credit facilities or other financing sources to fund operations and capital investments.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened significantly, with operating cash flow negative against positive revenue growth. The negative free cash flow margin reflected the shortfall in cash generation from operations, even as capital spending was reduced.
Compared to the prior quarter, operating cash flow declined and free cash flow worsened from a modest negative to a larger deficit. Year over year, the change was more pronounced, as the same quarter last year had positive operating cash flow and free cash flow.
Monitor the trajectory of operating cash flow in the coming quarters to assess if the negative trend reverses.