Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue in the current quarter was stable compared to the same quarter a year earlier, but operating cash flow turned more negative, leading to a larger free cash flow deficit and a worsened free cash flow margin. Sequentially, all cash flow metrics weakened significantly, flipping from positive to negative.
- Operating cash flow was negative despite stable revenue, while capital expenditure increased from the year-ago quarter, resulting in a free cash flow margin that was more negative than both comparable periods.
- Compared to the preceding quarter, operating cash flow and free cash flow both declined sharply from positive to negative, while revenue edged lower. Versus the same quarter one year earlier, revenue was flat but operating cash flow deteriorated, causing free cash flow to be more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$108.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$84.6M
Cash generated by operations before capital spending.
CapEx
$23.4M
Capital spending and related asset purchases.
FCF margin
-7.1%
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 | $489.1M | $26.7M | $462.4M | 31.2% |
| 2024-09-30 | $1.5B | $438.4M | $28.4M | $410.0M | 27.1% |
| 2024-12-31 | $1.6B | $316.9M | $7.0M | $309.9M | 19.5% |
| 2025-03-31 | $1.5B | -$84.6M | $23.4M | -$108.0M | -7.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -40.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$143.1M | 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 Swing
The most significant observable driver is the shift in operating cash flow from positive in the prior quarter to negative in the current quarter, which was the primary factor behind the negative free cash flow.
The magnitude of the operating cash flow decline will determine if free cash flow can recover.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative despite stable revenue, while capital expenditure increased from the year-ago quarter, resulting in a free cash flow margin that was more negative than both comparable periods.
Compared to the preceding quarter, operating cash flow and free cash flow both declined sharply from positive to negative, while revenue edged lower. Versus the same quarter one year earlier, revenue was flat but operating cash flow deteriorated, causing free cash flow to be more negative.
Monitor whether operating cash flow can return to positive territory in the coming quarters.