Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable compared to both the prior quarter and the same quarter last year. However, operating cash flow turned negative, resulting in a negative free cash flow and a weakened free cash flow margin.
- With revenue unchanged, the conversion from revenue to operating cash flow deteriorated sharply, as operating cash flow moved from positive to negative. Capital expenditure was lower, but the decline in operating cash flow drove free cash flow deeply negative, producing a negative margin.
- Compared to the immediately preceding quarter, free cash flow weakened substantially, shifting from a large positive to a negative figure, and the margin turned from positive to negative. Versus the same quarter one year earlier, free cash flow also weakened, as the prior year had positive free cash flow and a positive margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$69.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$315.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$79.0M
Cash generated by operations before capital spending.
CapEx
$236.0M
Capital spending and related asset purchases.
FCF margin
-5.3%
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 | $6.3B | $1.0B | $269.0M | $752.0M | 12.0% |
| 2024-09-30 | $6.3B | -$1.8B | $246.0M | -$2.0B | -32.3% |
| 2024-12-31 | $6.0B | $1.8B | $291.0M | $1.5B | 25.4% |
| 2025-03-31 | $6.0B | -$79.0M | $236.0M | -$315.0M | -5.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -28.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.0% | 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 turned negative this quarter, a significant shift from positive levels in both the prior quarter and the same quarter last year. This was the primary factor behind the negative free cash flow.
The negative operating cash flow directly caused free cash flow to be negative, despite lower capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue unchanged, the conversion from revenue to operating cash flow deteriorated sharply, as operating cash flow moved from positive to negative. Capital expenditure was lower, but the decline in operating cash flow drove free cash flow deeply negative, producing a negative margin.
Compared to the immediately preceding quarter, free cash flow weakened substantially, shifting from a large positive to a negative figure, and the margin turned from positive to negative. Versus the same quarter one year earlier, free cash flow also weakened, as the prior year had positive free cash flow and a positive margin.
Monitor whether operating cash flow returns to positive levels in the coming quarters.