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, free cash flow turned negative, driven by a sharp decline in operating cash flow relative to both comparison periods.
- Operating cash flow was significantly lower than revenue, resulting in a negative free cash flow after capital expenditure. The free cash flow margin weakened from positive levels in both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, operating cash flow was lower and free cash flow shifted from positive to negative. Versus the same quarter one year earlier, operating cash flow and free cash flow were both substantially lower, while capital expenditure was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$385.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$80.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$29.0M
Cash generated by operations before capital spending.
CapEx
$109.0M
Capital spending and related asset purchases.
FCF margin
-3.9%
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 | $2.1B | $355.0M | $58.0M | $297.0M | 14.3% |
| 2024-09-30 | $2.1B | $169.0M | $93.0M | $76.0M | 3.7% |
| 2024-12-31 | $2.1B | $219.0M | $127.0M | $92.0M | 4.4% |
| 2025-03-31 | $2.1B | $29.0M | $109.0M | -$80.0M | -3.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -58.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Weakness
Operating cash flow was substantially lower than both the prior quarter and the year-ago quarter, despite stable revenue. This drove free cash flow into negative territory.
The weakened cash conversion from revenue to operating cash flow is the strongest observable driver of the quarter's negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was significantly lower than revenue, resulting in a negative free cash flow after capital expenditure. The free cash flow margin weakened from positive levels in both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, operating cash flow was lower and free cash flow shifted from positive to negative. Versus the same quarter one year earlier, operating cash flow and free cash flow were both substantially lower, while capital expenditure was slightly higher.
Monitor the trajectory of operating cash flow, as its decline was the primary factor behind the negative free cash flow this quarter.