Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative this quarter, driven by a large operating cash outflow. Revenue was slightly higher than a year ago, but the cash conversion weakened sharply versus both the prior quarter and the same quarter last year.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow was negative, resulting in negative free cash flow and a negative free cash flow margin, a sharp reversal from the positive margins in both comparison periods.
- Compared to the prior quarter, revenue was lower, operating cash flow shifted from a large inflow to an outflow, and free cash flow turned from a large positive to a negative. Versus the same quarter last year, revenue was higher, but operating cash flow and free cash flow both weakened from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$102.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$150.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$140.0M
Cash generated by operations before capital spending.
CapEx
$10.0M
Capital spending and related asset purchases.
FCF margin
-36.5%
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 | $379.0M | -$217.0M | $13.0M | -$230.0M | -60.7% |
| 2024-09-30 | $419.0M | -$1.2B | $17.0M | -$1.2B | -291.6% |
| 2024-12-31 | $448.0M | $1.7B | $23.0M | $1.7B | 380.4% |
| 2025-03-31 | $411.0M | -$140.0M | $10.0M | -$150.0M | -36.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -37.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | 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.
Operating Cash Flow Swing
Operating cash flow moved from a large positive in both comparison periods to a negative this quarter, which is the strongest observable driver of the negative free cash flow. Capital expenditure was lower than the prior quarter and slightly lower than a year ago, but the operating cash flow decline was the dominant factor.
The negative operating cash flow directly caused free cash flow to turn negative, reversing the positive free cash flow seen in both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow was negative, resulting in negative free cash flow and a negative free cash flow margin, a sharp reversal from the positive margins in both comparison periods.
Compared to the prior quarter, revenue was lower, operating cash flow shifted from a large inflow to an outflow, and free cash flow turned from a large positive to a negative. Versus the same quarter last year, revenue was higher, but operating cash flow and free cash flow both weakened from positive to negative.
Monitor whether operating cash flow can return to positive levels in the coming quarter, as it is the primary driver of free cash flow.