Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative in the quarter, but the margin improved compared with both the prior quarter and the same quarter last year. Revenue growth and a shift to positive operating cash flow from a year ago were the primary factors behind the improvement.
- Revenue was higher than both comparable periods, while operating cash flow was positive but lower than the prior quarter. Capital expenditure remained relatively stable, and the resulting free cash flow was negative, though the margin was less negative than in both the prior quarter and the year-ago quarter.
- Compared with the prior quarter, revenue was higher but operating cash flow was lower, and free cash flow margin improved slightly. Compared with the same quarter last year, revenue was substantially higher, operating cash flow turned positive, and free cash flow margin improved markedly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$489.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$421.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$26.0M
Cash generated by operations before capital spending.
CapEx
$447.0M
Capital spending and related asset purchases.
FCF margin
-27.0%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $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% |
| 2025-09-30 | $1.6B | $26.0M | $447.0M | -$421.0M | -27.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 35.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 28.7% | 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.
Revenue Growth
Revenue was higher than both the immediately preceding quarter and the same quarter one year earlier. Operating cash flow remained positive but was lower than the prior quarter, while capital expenditure was stable.
The combination of higher revenue and stable capital expenditure helped reduce the negative free cash flow margin compared with both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both comparable periods, while operating cash flow was positive but lower than the prior quarter. Capital expenditure remained relatively stable, and the resulting free cash flow was negative, though the margin was less negative than in both the prior quarter and the year-ago quarter.
Compared with the prior quarter, revenue was higher but operating cash flow was lower, and free cash flow margin improved slightly. Compared with the same quarter last year, revenue was substantially higher, operating cash flow turned positive, and free cash flow margin improved markedly.
Monitor the trend in operating cash flow, as it declined from the prior quarter despite higher revenue.