Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter and higher than the same quarter one year ago. Operating cash flow, free cash flow, and free cash flow margin all improved from negative to positive compared to both the prior quarter and the year-ago quarter.
- Revenue decreased from the prior quarter, but operating cash flow turned positive, driving free cash flow and free cash flow margin to positive territory. Capital expenditure was slightly higher than the prior quarter and lower than the year-ago quarter.
- Compared to the prior quarter, revenue was lower, but operating cash flow and free cash flow improved significantly from negative to positive, and the free cash flow margin strengthened. Compared to the same quarter one year ago, revenue was higher, and all cash flow metrics improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$29.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$594.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$626.8M
Cash generated by operations before capital spending.
CapEx
$32.7M
Capital spending and related asset purchases.
FCF margin
12.9%
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 | $5.4B | -$647.8M | $14.0M | -$661.8M | -12.4% |
| 2024-09-30 | $5.9B | $408.9M | $44.3M | $364.6M | 6.1% |
| 2024-12-31 | $5.7B | -$239.8M | $27.5M | -$267.3M | -4.7% |
| 2025-03-31 | $4.6B | $626.8M | $32.7M | $594.1M | 12.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 546.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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.
Cash flow turnaround
Operating cash flow turned strongly positive from a negative level in both the prior quarter and the year-ago quarter, lifting free cash flow and free cash flow margin to positive. The filing notes an increased need for working capital to support higher inventory levels for growing revenues, but the current quarter's cash generation exceeded that need.
This quarter marks a shift from negative to positive cash conversion across the key metrics.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased from the prior quarter, but operating cash flow turned positive, driving free cash flow and free cash flow margin to positive territory. Capital expenditure was slightly higher than the prior quarter and lower than the year-ago quarter.
Compared to the prior quarter, revenue was lower, but operating cash flow and free cash flow improved significantly from negative to positive, and the free cash flow margin strengthened. Compared to the same quarter one year ago, revenue was higher, and all cash flow metrics improved from negative to positive.
Monitor capital expenditure levels relative to operating cash flow stability, as capital expenditure was lower than the year-ago quarter while operating cash flow strengthened.