Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow covered a smaller share of capital expenditure, resulting in negative free cash flow for the quarter. Compared to the prior quarter, cash generation weakened sharply, but versus the same quarter last year, the free cash flow deficit narrowed.
- Revenue exceeded operating cash flow, while capital expenditure exceeded operating cash flow, driving free cash flow negative. The resulting free cash flow margin was adverse, contrasting with the positive margin in the preceding quarter and a less adverse margin a year earlier.
- Sequentially, revenue, operating cash flow, and free cash flow all declined, with operating cash flow falling much more sharply, flipping free cash flow from positive to negative. Year over year, revenue and operating cash flow improved, capital expenditure also rose, and free cash flow remained negative but was less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$367.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$15.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$218.0M
Cash generated by operations before capital spending.
CapEx
$233.0M
Capital spending and related asset purchases.
FCF margin
-1.3%
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 | $2.0B | $1.0M | $139.0M | -$138.0M | -7.0% |
| 2024-09-30 | $1.2B | $600.0M | $283.0M | $317.0M | 25.7% |
| 2024-12-31 | $1.4B | $686.0M | $483.0M | $203.0M | 14.4% |
| 2025-03-31 | $1.2B | $218.0M | $233.0M | -$15.0M | -1.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -12.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 20.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Revenue and Operating Cash Flow Year Over Year
Revenue was higher than a year ago, and operating cash flow also increased, narrowing the free cash flow deficit despite a rise in capital expenditure. This year-over-year improvement is the most observable positive driver.
The stronger operating cash flow partially offset higher capital spending, reducing the free cash outflow compared to the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue exceeded operating cash flow, while capital expenditure exceeded operating cash flow, driving free cash flow negative. The resulting free cash flow margin was adverse, contrasting with the positive margin in the preceding quarter and a less adverse margin a year earlier.
Sequentially, revenue, operating cash flow, and free cash flow all declined, with operating cash flow falling much more sharply, flipping free cash flow from positive to negative. Year over year, revenue and operating cash flow improved, capital expenditure also rose, and free cash flow remained negative but was less negative.
Monitor the deferred income tax payments totaling a material amount under disaster tax relief provisions, as those are scheduled to be due shortly after the quarter end.