Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
For the first quarter of fiscal 2025, free cash flow was negative as operating cash flow did not cover capital expenditure. The free cash flow margin was negative, reflecting a cash conversion shortfall.
- Revenue was stable compared to the prior year, but operating cash flow remained negative, and capital expenditure increased, resulting in negative free cash flow and a negative margin. Operating cash flow was insufficient to fund capital investment.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow swung from positive to negative, and free cash flow turned from positive to negative. Compared to the same quarter one year earlier, revenue was stable, operating cash flow improved, and the free cash flow deficit narrowed.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$526.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$188.0M
Cash generated by operations before capital spending.
CapEx
$338.0M
Capital spending and related asset purchases.
FCF margin
-42.4%
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 | $1.2B | -$754.0M | $283.0M | -$1.0B | -89.6% |
| 2024-09-30 | $874.0M | -$876.0M | $277.0M | -$1.2B | -131.9% |
| 2024-12-31 | $1.7B | $1.2B | $327.0M | $856.0M | 49.4% |
| 2025-03-31 | $1.2B | -$188.0M | $338.0M | -$526.0M | -42.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 96.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 27.3% | 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.
Reduced Operating Cash Outflow
Operating cash flow improved significantly compared to the prior year, narrowing the gap between cash from operations and capital expenditure. This improvement helped reduce the free cash flow deficit.
The reduced operating cash outflow was the primary factor behind the smaller free cash flow deficit relative to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior year, but operating cash flow remained negative, and capital expenditure increased, resulting in negative free cash flow and a negative margin. Operating cash flow was insufficient to fund capital investment.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow swung from positive to negative, and free cash flow turned from positive to negative. Compared to the same quarter one year earlier, revenue was stable, operating cash flow improved, and the free cash flow deficit narrowed.
Based on the filing, liquidity decreased, and the company amended its credit facility while disclosing an equity investment agreement—these factors warrant monitoring.