Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than the same quarter last year, but operating cash flow declined sharply sequentially while capital expenditure increased. Free cash flow turned more negative, and the margin weakened significantly versus both comparison periods.
- Operating cash flow was lower than the previous quarter despite stable revenue, and capital expenditure rose, resulting in a larger negative free cash flow and a weaker free cash flow margin compared to both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, operating cash flow was lower and capital expenditure was higher, leading to a more negative free cash flow and a weaker margin. Relative to the same quarter last year, revenue was higher, but a larger increase in capital expenditure outweighed the improvement in operating cash flow, also resulting in a more negative free cash flow and weaker margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$821.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$477.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$197.3M
Cash generated by operations before capital spending.
CapEx
$674.8M
Capital spending and related asset purchases.
FCF margin
-30.0%
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 | $1.5B | $382.2M | $396.8M | -$14.6M | -1.0% |
| 2024-09-30 | $1.6B | $252.9M | $396.1M | -$143.2M | -9.2% |
| 2024-12-31 | $1.6B | $431.6M | $617.6M | -$186.0M | -11.8% |
| 2025-03-31 | $1.6B | $197.3M | $674.8M | -$477.5M | -30.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -2941.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 42.4% | 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.
Rising Capital Expenditure
Capital expenditure in the current quarter was higher than both the prior quarter and the same quarter last year, contributing significantly to the larger negative free cash flow.
This elevated level of capital spending is a key driver of the cash flow deficit and a primary factor to watch for future quarters.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the previous quarter despite stable revenue, and capital expenditure rose, resulting in a larger negative free cash flow and a weaker free cash flow margin compared to both the prior quarter and the year-ago quarter.
Compared to the prior quarter, operating cash flow was lower and capital expenditure was higher, leading to a more negative free cash flow and a weaker margin. Relative to the same quarter last year, revenue was higher, but a larger increase in capital expenditure outweighed the improvement in operating cash flow, also resulting in a more negative free cash flow and weaker margin.
Monitor the trajectory of capital expenditure and the completion timeline of the Project Matterhorn transformation program as described in the filing.