Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than the same quarter last year. However, operating cash flow turned negative, resulting in a negative free cash flow margin, a sharp reversal from positive margins in both comparison periods.
- Despite stable revenue, operating cash flow was negative, and capital expenditure was slightly higher than both comparison periods. This produced negative free cash flow and a negative margin, indicating cash conversion weakened significantly from the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was stable, but operating cash flow shifted from positive to negative, and free cash flow margin dropped from positive to negative. Versus the same quarter one year earlier, revenue was higher, yet operating cash flow and free cash flow both turned negative, with margin declining sharply.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$56.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$10.0M
Cash generated by operations before capital spending.
CapEx
$46.0M
Capital spending and related asset purchases.
FCF margin
-1.3%
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 | $3.8B | $117.0M | $46.0M | $71.0M | 1.8% |
| 2025-06-30 | $3.8B | $691.0M | $57.0M | $634.0M | 16.5% |
| 2025-09-30 | $4.2B | $796.0M | $44.0M | $752.0M | 17.9% |
| 2025-12-31 | $4.2B | -$10.0M | $46.0M | -$56.0M | -1.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -9.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | 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.
Negative Operating Cash Flow
Operating cash flow turned negative this quarter, a stark contrast to the large positive figures in both the prior quarter and the year-ago quarter. This is the strongest observable driver of the negative free cash flow.
The negative operating cash flow directly caused free cash flow to be negative despite stable revenue and only a modest increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite stable revenue, operating cash flow was negative, and capital expenditure was slightly higher than both comparison periods. This produced negative free cash flow and a negative margin, indicating cash conversion weakened significantly from the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue was stable, but operating cash flow shifted from positive to negative, and free cash flow margin dropped from positive to negative. Versus the same quarter one year earlier, revenue was higher, yet operating cash flow and free cash flow both turned negative, with margin declining sharply.
Monitor whether operating cash flow returns to positive levels in the next quarter, as the current negative figure is a significant deviation from recent history.