Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company generated negative free cash flow this quarter as operating cash flow fell short of capital expenditure. Revenue was stable compared to the prior quarter but lower than the same quarter a year earlier, while free cash flow margin turned negative after being positive in the prior period.
- Operating cash flow was lower than capital expenditure, resulting in negative free cash flow and a negative free cash flow margin. The cash conversion from revenue was weaker than the prior quarter, where operating cash flow more than covered capital spending.
- Compared to the prior quarter, operating cash flow decreased and capital expenditure increased, turning free cash flow from positive to negative. Compared to the same quarter a year earlier, operating cash flow improved but capital expenditure rose more sharply, widening the free cash flow deficit.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$574.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$52.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$127.0M
Cash generated by operations before capital spending.
CapEx
$179.0M
Capital spending and related asset purchases.
FCF margin
-1.8%
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 | $2.9B | $237.0M | $82.0M | $155.0M | 5.4% |
| 2024-09-30 | $2.9B | $345.0M | $103.0M | $242.0M | 8.3% |
| 2024-12-31 | $2.8B | $389.0M | $160.0M | $229.0M | 8.3% |
| 2025-03-31 | $2.8B | $127.0M | $179.0M | -$52.0M | -1.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 5.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.7B | 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 Decline
Operating cash flow was markedly lower than the prior quarter, while capital expenditure increased. This combination drove the negative free cash flow despite stable revenue.
The weakened cash generation from operations, together with higher capital spending, reversed the positive free cash flow position seen in the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than capital expenditure, resulting in negative free cash flow and a negative free cash flow margin. The cash conversion from revenue was weaker than the prior quarter, where operating cash flow more than covered capital spending.
Compared to the prior quarter, operating cash flow decreased and capital expenditure increased, turning free cash flow from positive to negative. Compared to the same quarter a year earlier, operating cash flow improved but capital expenditure rose more sharply, widening the free cash flow deficit.
Monitor the impact of the company's internal reorganization effective at the start of this calendar year on future operating cash flow and capital allocation.