Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative in the first quarter, driven by a large operating cash outflow that outweighed modest capital spending. Revenue remained stable compared to the prior quarter, but the cash conversion weakened sharply.
- Operating cash flow turned negative, resulting in a free cash flow margin that was deeply negative. Capital expenditure was slightly lower than the previous quarter, but the operating cash outflow was the primary factor behind the negative free cash flow.
- Compared to the prior quarter, operating cash flow and free cash flow both shifted from positive to negative, while revenue was essentially unchanged. Versus the same quarter last year, operating cash flow and free cash flow were more negative, despite slightly lower revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$842.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$190.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$158.0M
Cash generated by operations before capital spending.
CapEx
$32.0M
Capital spending and related asset purchases.
FCF margin
-10.5%
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 | $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% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -102.2% | 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.
Operating Cash Flow Swing
Operating cash flow turned from a large positive in the prior quarter to a negative figure this quarter, which was the strongest observable driver of the negative free cash flow. Capital expenditure remained relatively stable.
The negative operating cash flow directly caused free cash flow to be negative, despite stable revenue and capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow turned negative, resulting in a free cash flow margin that was deeply negative. Capital expenditure was slightly lower than the previous quarter, but the operating cash outflow was the primary factor behind the negative free cash flow.
Compared to the prior quarter, operating cash flow and free cash flow both shifted from positive to negative, while revenue was essentially unchanged. Versus the same quarter last year, operating cash flow and free cash flow were more negative, despite slightly lower revenue.
Monitor the trajectory of operating cash flow, as the current quarter's outflow represents a significant swing from the prior period.