Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative for the quarter, but the deficit narrowed sharply from both the prior quarter and the same period last year. The improvement was accompanied by a substantial increase in revenue, while operating cash flow remained negative.
- Revenue rose considerably, yet operating cash flow was still negative, leading to negative free cash flow. The free cash flow margin narrowed significantly, indicating less cash consumed per unit of revenue.
- Compared to the prior quarter and the same quarter one year earlier, the free cash flow deficit was much smaller. Both revenue and operating cash flow improved substantially relative to those periods.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$440.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$45.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$23.9M
Cash generated by operations before capital spending.
CapEx
$21.2M
Capital spending and related asset purchases.
FCF margin
-0.4%
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 | $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% |
| 2025-12-31 | $12.7B | -$23.9M | $21.2M | -$45.1M | -0.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -11.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | 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 Expansion
The quarter saw a large increase in revenue compared to both the prior quarter and the year-ago period, which contributed to an improvement in operating cash flow and a narrower free cash flow deficit.
This revenue expansion was the primary factor behind the significantly improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose considerably, yet operating cash flow was still negative, leading to negative free cash flow. The free cash flow margin narrowed significantly, indicating less cash consumed per unit of revenue.
Compared to the prior quarter and the same quarter one year earlier, the free cash flow deficit was much smaller. Both revenue and operating cash flow improved substantially relative to those periods.
Monitor inventory levels and customer payment terms, as these were cited as key factors affecting working capital in the liquidity discussion.