Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive from negative in the prior quarter, yet free cash flow remained negative due to elevated capital expenditure. Free cash flow margin improved versus both the prior quarter and the same quarter a year earlier.
- Revenue was stable relative to the preceding quarter and the year-ago period. Positive operating cash flow allowed the company to generate cash from operations, but capital expenditure was greater than operating cash flow, resulting in a negative free cash flow and a negative margin.
- Compared with the immediately preceding quarter, operating cash flow improved from negative to positive, free cash flow was less negative, and free cash flow margin was higher. Versus the same quarter one year earlier, operating cash flow, free cash flow, and free cash flow margin all showed significant improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$398.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$64.0M
Cash generated by operations before capital spending.
CapEx
$462.0M
Capital spending and related asset purchases.
FCF margin
-30.5%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $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% |
| 2025-06-30 | $1.3B | $64.0M | $462.0M | -$398.0M | -30.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 35.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 35.5% | 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 turned positive
Operating cash flow shifted from a negative amount in the prior quarter to a positive amount in the current quarter, a clear improvement. This change was the primary factor behind the reduced free cash flow deficit.
The positive swing in operating cash flow directly narrowed the free cash flow gap relative to both the prior and year-ago quarters.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to the preceding quarter and the year-ago period. Positive operating cash flow allowed the company to generate cash from operations, but capital expenditure was greater than operating cash flow, resulting in a negative free cash flow and a negative margin.
Compared with the immediately preceding quarter, operating cash flow improved from negative to positive, free cash flow was less negative, and free cash flow margin was higher. Versus the same quarter one year earlier, operating cash flow, free cash flow, and free cash flow margin all showed significant improvement.
Monitor the magnitude of capital expenditure relative to operating cash flow, as the gap between them remains a key factor in free cash flow generation.