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 this quarter, with operating cash flow turning negative and capital expenditure increasing. The filing notes that operating cash flow was affected by substantial payments, including severance, transaction costs, and incentive compensation.
- Revenue was higher than both the prior quarter and the same quarter a year earlier. However, operating cash flow turned negative, and capital expenditure rose, leading to a negative free cash flow margin.
- Compared with the immediately preceding quarter, revenue improved, operating cash flow weakened from positive to negative, and free cash flow turned from positive to negative. Versus the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow both deteriorated.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$5.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$618.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$288.0M
Cash generated by operations before capital spending.
CapEx
$330.0M
Capital spending and related asset purchases.
FCF margin
-11.7%
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 | $5.4B | $365.0M | $198.0M | $167.0M | 3.1% |
| 2024-09-30 | $2.6B | $521.0M | $212.0M | $309.0M | 12.1% |
| 2024-12-31 | $3.9B | $397.0M | $260.0M | $137.0M | 3.5% |
| 2025-03-31 | $5.3B | -$288.0M | $330.0M | -$618.0M | -11.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 588.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.3% | 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 moved from a positive figure in both comparison periods to a negative figure this quarter, influenced by significant cash outflows described in the filing.
This shift caused free cash flow to become negative and the margin to turn unfavorable.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the same quarter a year earlier. However, operating cash flow turned negative, and capital expenditure rose, leading to a negative free cash flow margin.
Compared with the immediately preceding quarter, revenue improved, operating cash flow weakened from positive to negative, and free cash flow turned from positive to negative. Versus the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow both deteriorated.
Monitor whether operating cash flow returns to positive levels in the coming quarters, given the concentrated outflows for certain payments in this period.