Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, but free cash flow turned negative, and free cash flow margin weakened. The decline in operating cash flow outweighed the revenue growth and a reduction in capital expenditure.
- Revenue grew sequentially and year-over-year, yet operating cash flow fell substantially, resulting in a negative free cash flow and a weaker free cash flow margin.
- Compared to the preceding quarter, free cash flow shifted from positive to negative, and the margin worsened. Year over year, both free cash flow and margin declined significantly from the prior year's levels.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$629.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$108.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$178.0M
Cash generated by operations before capital spending.
CapEx
$286.0M
Capital spending and related asset purchases.
FCF margin
-3.4%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $2.7B | $761.0M | $539.0M | $222.0M | 8.3% |
| 2024-12-31 | $2.9B | $915.0M | $547.0M | $368.0M | 12.7% |
| 2025-03-31 | $2.9B | $526.0M | $379.0M | $147.0M | 5.1% |
| 2025-06-30 | $3.2B | $178.0M | $286.0M | -$108.0M | -3.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -23.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.0% | 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
Operating cash flow decreased despite higher revenue, leading to negative free cash flow.
If operating cash flow does not recover, free cash flow may remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue grew sequentially and year-over-year, yet operating cash flow fell substantially, resulting in a negative free cash flow and a weaker free cash flow margin.
Compared to the preceding quarter, free cash flow shifted from positive to negative, and the margin worsened. Year over year, both free cash flow and margin declined significantly from the prior year's levels.
Monitor the relationship between revenue growth and operating cash flow to see if cash conversion improves.