Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, improving from a negative position a year ago. Revenue and operating cash flow both decreased compared to the prior quarter, but the company maintained a positive free cash flow margin.
- Operating cash flow of seventy million dollars exceeded capital expenditure of three million dollars, yielding free cash flow of sixty-seven million dollars and a free cash flow margin of nine point one percent. Revenue of seven hundred thirty-six million dollars provided the base for this conversion.
- Compared to the prior quarter, revenue and operating cash flow were lower, and free cash flow margin weakened from forty-seven point two percent to nine point one percent. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow and free cash flow improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$67.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$70.0M
Cash generated by operations before capital spending.
CapEx
$3.0M
Capital spending and related asset purchases.
FCF margin
9.1%
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $1.2B | -$279.0M | $4.0M | -$283.0M | -24.5% |
| 2025-06-30 | $1.6B | $823.0M | $2.0M | $821.0M | 52.4% |
| 2025-09-30 | $915.0M | $435.0M | $3.0M | $432.0M | 47.2% |
| 2025-12-31 | $736.0M | $70.0M | $3.0M | $67.0M | 9.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -6.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | 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 Turnaround
Operating cash flow shifted from negative eighty million dollars a year ago to positive seventy million dollars this quarter, driving the improvement in free cash flow. This change occurred despite lower revenue compared to both the prior quarter and the year-ago quarter.
The positive operating cash flow enabled the company to generate free cash flow rather than consume cash as it did a year ago.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of seventy million dollars exceeded capital expenditure of three million dollars, yielding free cash flow of sixty-seven million dollars and a free cash flow margin of nine point one percent. Revenue of seven hundred thirty-six million dollars provided the base for this conversion.
Compared to the prior quarter, revenue and operating cash flow were lower, and free cash flow margin weakened from forty-seven point two percent to nine point one percent. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow and free cash flow improved from negative to positive.
Monitor whether operating cash flow can sustain its positive level given the decline in revenue from the prior quarter.