Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from both the prior quarter and the same quarter last year. Operating cash flow turned positive year-over-year but fell sharply from the prior quarter, while free cash flow remained negative due to elevated capital expenditure.
- Operating cash flow as a percentage of revenue weakened sequentially but improved compared to the same quarter last year. The free cash flow margin was negative in all periods, though it improved from the year-ago quarter.
- Compared to the prior quarter, revenue was lower, operating cash flow was significantly lower, and capital expenditure was higher, resulting in a more negative free cash flow. Compared to the same quarter last year, revenue was slightly lower, operating cash flow improved from negative to positive, capital expenditure was lower, and free cash flow was less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$212.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$297.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$42.9M
Cash generated by operations before capital spending.
CapEx
$340.8M
Capital spending and related asset purchases.
FCF margin
-11.4%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $2.8B | $847.0M | $333.9M | $513.1M | 18.2% |
| 2024-09-30 | $2.8B | $312.9M | $240.8M | $72.1M | 2.6% |
| 2024-12-31 | $2.8B | $219.3M | $294.1M | -$74.8M | -2.7% |
| 2025-03-31 | $2.6B | $42.9M | $340.8M | -$297.9M | -11.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -125.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 13.0% | 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.
Capital Expenditure Outpacing Operating Cash Flow
Capital expenditure was higher than operating cash flow in the current quarter, a reversal from the prior quarter where operating cash flow exceeded capital expenditure. This drove the negative free cash flow.
The elevated capital expenditure relative to operating cash flow was the strongest observable driver of the negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue weakened sequentially but improved compared to the same quarter last year. The free cash flow margin was negative in all periods, though it improved from the year-ago quarter.
Compared to the prior quarter, revenue was lower, operating cash flow was significantly lower, and capital expenditure was higher, resulting in a more negative free cash flow. Compared to the same quarter last year, revenue was slightly lower, operating cash flow improved from negative to positive, capital expenditure was lower, and free cash flow was less negative.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the gap widened sequentially.