Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than both the prior quarter and the same quarter last year. Operating cash flow turned negative, resulting in a negative free cash flow margin, a significant weakening from the positive margins in both comparison periods.
- Despite revenue, operating cash flow was deeply negative, and capital expenditure was lower than a year ago but higher than the prior quarter. The combination produced a negative free cash flow and a negative free cash flow margin, indicating cash conversion was substantially weaker than in either comparison period.
- Compared to the prior quarter, revenue was lower, operating cash flow shifted from positive to negative, and free cash flow margin turned from positive to negative. Versus the same quarter last year, revenue was lower, operating cash flow was lower, and free cash flow margin weakened from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$217.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$949.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$917.5M
Cash generated by operations before capital spending.
CapEx
$32.3M
Capital spending and related asset purchases.
FCF margin
-18.9%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $5.7B | -$239.8M | $27.5M | -$267.3M | -4.7% |
| 2025-03-31 | $4.6B | $626.8M | $32.7M | $594.1M | 12.9% |
| 2025-06-30 | $5.8B | $863.6M | $22.7M | $840.9M | 14.6% |
| 2025-09-30 | $5.0B | -$917.5M | $32.3M | -$949.8M | -18.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -564.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | 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 deeply negative, a sharp reversal from positive levels in both the prior quarter and the year-ago quarter. The filing context notes an increase in working capital needs due to higher inventory levels and longer customer payment terms.
This drove free cash flow to a negative level and a negative margin, the weakest cash conversion outcome among the three periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite revenue, operating cash flow was deeply negative, and capital expenditure was lower than a year ago but higher than the prior quarter. The combination produced a negative free cash flow and a negative free cash flow margin, indicating cash conversion was substantially weaker than in either comparison period.
Compared to the prior quarter, revenue was lower, operating cash flow shifted from positive to negative, and free cash flow margin turned from positive to negative. Versus the same quarter last year, revenue was lower, operating cash flow was lower, and free cash flow margin weakened from positive to negative.
Monitor the level of inventory and working capital needs as cited in the filing context, which contributed to the negative operating cash flow.