Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's free cash flow weakened sharply as operating cash flow declined while capital expenditure increased. Revenue was stable compared to both the prior quarter and the same quarter last year, but free cash flow margin deteriorated markedly.
- With revenue unchanged, the cash conversion weakened because operating cash flow fell and capital expenditure rose, resulting in a lower free cash flow and a thinner free cash flow margin.
- Compared to the preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all substantially lower. Versus the same quarter one year earlier, operating cash flow was lower, free cash flow was lower, and free cash flow margin was lower, despite higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$746.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$27.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$50.8M
Cash generated by operations before capital spending.
CapEx
$23.7M
Capital spending and related asset purchases.
FCF margin
2.7%
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 | $1.0B | -$38.9M | $16.8M | -$55.7M | -5.5% |
| 2025-06-30 | $1.1B | $606.6M | $10.9M | $595.7M | 53.0% |
| 2025-09-30 | $1.0B | $196.3M | $17.4M | $178.9M | 17.5% |
| 2025-12-31 | $1.0B | $50.8M | $23.7M | $27.1M | 2.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 16.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.5B | 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 was substantially lower than both the prior quarter and the same quarter last year, driving the reduction in free cash flow. Revenue was unchanged, indicating that the lower conversion from revenue to cash was the strongest observable driver.
The decline in operating cash flow reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue unchanged, the cash conversion weakened because operating cash flow fell and capital expenditure rose, resulting in a lower free cash flow and a thinner free cash flow margin.
Compared to the preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all substantially lower. Versus the same quarter one year earlier, operating cash flow was lower, free cash flow was lower, and free cash flow margin was lower, despite higher capital expenditure.
Monitor operating cash flow direction, as its decline was the primary factor behind the weakened free cash flow.