Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow was negative, reflecting operating cash flow that was much lower than the preceding quarter but higher than the same quarter last year. Capital expenditure increased relative to the prior quarter, compounding the effect on free cash flow.
- With revenue stable, the conversion to cash was weak as operating cash flow fell short of capital spending, resulting in a negative free cash flow margin. The margin improved from a year ago but weakened substantially from the prior quarter.
- Compared to the preceding quarter, free cash flow turned from positive to negative, driven by a sharp decline in operating cash flow. Versus the same quarter one year earlier, free cash flow improved as operating cash flow turned positive and capital expenditure decreased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$107.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$18.5M
Cash generated by operations before capital spending.
CapEx
$126.0M
Capital spending and related asset purchases.
FCF margin
-3.2%
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 | $3.2B | $561.1M | $128.2M | $432.9M | 13.4% |
| 2024-09-30 | $3.3B | $277.3M | $115.8M | $161.5M | 4.9% |
| 2024-12-31 | $3.3B | $777.2M | $112.1M | $665.1M | 20.0% |
| 2025-03-31 | $3.3B | $18.5M | $126.0M | -$107.5M | -3.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -50.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | 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 decline
The most significant observable change was the sharp reduction in operating cash flow from the previous quarter, reversing the prior period's strong generation. This was the primary factor behind the negative free cash flow.
Free cash flow turned negative despite stable revenue, highlighting the dependency on operating cash flow levels.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue stable, the conversion to cash was weak as operating cash flow fell short of capital spending, resulting in a negative free cash flow margin. The margin improved from a year ago but weakened substantially from the prior quarter.
Compared to the preceding quarter, free cash flow turned from positive to negative, driven by a sharp decline in operating cash flow. Versus the same quarter one year earlier, free cash flow improved as operating cash flow turned positive and capital expenditure decreased.
Monitor the cash and cash equivalents balance, which decreased significantly from the prior quarter end.