Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
For the quarter, free cash flow was negative, a weakened performance compared to the prior quarter but improved from the same quarter last year. The negative free cash flow resulted from operating cash flow being negative, despite revenue being slightly higher than both comparable periods.
- Revenue increased slightly from both the prior quarter and the year-ago quarter, but operating cash flow turned negative, leading to negative free cash flow and a negative margin. This indicates that cash conversion was weaker than the prior quarter but improved relative to the year-ago period.
- Compared to the immediately preceding quarter, all cash flow metrics worsened, with operating cash flow shifting from positive to negative. Compared to the same quarter one year earlier, operating cash flow and free cash flow were less negative, and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$943.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$113.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$79.0M
Cash generated by operations before capital spending.
CapEx
$34.0M
Capital spending and related asset purchases.
FCF margin
-5.9%
The share of revenue converted into free cash flow.
TTM FCF yield
6.0%
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | -$79.0M | Cash generated by operations before capital spending. |
| Capital expenditures | $34.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | -$113.0M | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $2.4B | $401.0M | $43.0M | $358.0M | 15.2% |
| 2022-09-30 | $2.2B | $346.0M | $67.0M | $279.0M | 12.7% |
| 2022-12-31 | $1.9B | $320.0M | $87.0M | $233.0M | 12.1% |
| 2023-03-31 | $2.0B | $33.0M | $61.0M | -$28.0M | -1.4% |
| 2023-06-30 | $2.1B | $415.0M | $72.0M | $343.0M | 16.1% |
| 2023-09-30 | $2.0B | $480.0M | $48.0M | $432.0M | 21.8% |
| 2023-12-31 | $1.9B | $485.0M | $62.0M | $423.0M | 22.5% |
| 2024-03-31 | $1.9B | -$94.0M | $31.0M | -$125.0M | -6.5% |
| 2024-06-30 | $2.1B | $346.0M | $43.0M | $303.0M | 14.5% |
| 2024-09-30 | $2.0B | $416.0M | $38.0M | $378.0M | 19.1% |
| 2024-12-31 | $1.8B | $407.0M | $56.0M | $351.0M | 19.2% |
| 2025-03-31 | $1.8B | -$158.0M | $32.0M | -$190.0M | -10.5% |
| 2025-06-30 | $2.1B | $306.0M | $36.0M | $270.0M | 13.2% |
| 2025-09-30 | $1.9B | $456.0M | $41.0M | $415.0M | 21.6% |
| 2025-12-31 | $1.8B | $418.0M | $47.0M | $371.0M | 20.7% |
| 2026-03-31 | $1.9B | -$79.0M | $34.0M | -$113.0M | -5.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -53.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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.
Year-over-year cash flow improvement
Operating cash flow, while still negative, was significantly less negative compared to the same quarter last year. This reduced the free cash flow deficit and improved the margin.
The year-over-year improvement in cash generation provided a better starting point for the year than the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased slightly from both the prior quarter and the year-ago quarter, but operating cash flow turned negative, leading to negative free cash flow and a negative margin. This indicates that cash conversion was weaker than the prior quarter but improved relative to the year-ago period.
Compared to the immediately preceding quarter, all cash flow metrics worsened, with operating cash flow shifting from positive to negative. Compared to the same quarter one year earlier, operating cash flow and free cash flow were less negative, and the margin improved.
Monitor the trajectory of operating cash flow, which turned negative this quarter after being strongly positive in the prior quarter.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $15.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | 6.0% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |