Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the first quarter of fiscal 2025, the company reported negative free cash flow and a negative margin, driven by operating cash flow turning negative despite revenue growth compared to the same quarter last year. The cash conversion weakened sharply relative to both the preceding quarter and the year-ago period.
- Revenue was higher than the same quarter last year but lower than the immediately preceding quarter. Operating cash flow was negative, which, combined with capital expenditure, led to a larger free cash flow deficit compared to both prior periods.
- Compared to the prior quarter, revenue declined, operating cash flow swung from strongly positive to negative, and free cash flow margin turned from positive to deeply negative. Versus the same quarter last year, revenue improved, but operating cash flow worsened from positive to negative, and the free cash flow margin became more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$271.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$119.0M
Cash generated by operations before capital spending.
CapEx
$152.3M
Capital spending and related asset purchases.
FCF margin
-11.4%
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 |
|---|---|---|---|---|---|
| 2024-07-28 | $2.4B | $443.1M | $145.1M | $298.1M | 12.6% |
| 2024-10-27 | $2.4B | $300.7M | $178.5M | $122.2M | 5.1% |
| 2025-02-02 | $3.6B | $1.4B | $235.0M | $1.2B | 32.3% |
| 2025-05-04 | $2.4B | -$119.0M | $152.3M | -$271.2M | -11.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -86.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.4% | 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 shifted from strongly positive in the prior quarter and slightly positive a year ago to negative this quarter. This change had a greater impact on free cash flow than the moderate movements in capital expenditure.
The negative operating cash flow was the strongest observable driver, overwhelming the revenue growth from a year ago and causing the free cash flow margin to become significantly more negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the same quarter last year but lower than the immediately preceding quarter. Operating cash flow was negative, which, combined with capital expenditure, led to a larger free cash flow deficit compared to both prior periods.
Compared to the prior quarter, revenue declined, operating cash flow swung from strongly positive to negative, and free cash flow margin turned from positive to deeply negative. Versus the same quarter last year, revenue improved, but operating cash flow worsened from positive to negative, and the free cash flow margin became more negative.
Monitor whether operating cash flow can return to positive territory in the coming quarter, as its negative position was the primary cause of the free cash flow deficit.