Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter after a negative prior quarter, though it remained lower than the same quarter last year. Operating cash flow improved sequentially but was still below the year-ago level.
- Revenue was slightly lower than both the prior quarter and the year-ago quarter. Operating cash flow improved from the prior quarter but was lower than a year ago. Capital expenditure decreased compared to both periods, contributing to the positive free cash flow. The free cash flow margin turned positive from negative in the prior quarter but remained below the year-ago margin.
- Compared to the prior quarter, free cash flow improved from negative to positive, driven by higher operating cash flow and lower capital expenditure. Compared to the same quarter last year, free cash flow was lower, as operating cash flow declined more than the reduction in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$10.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$32.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$95.0M
Cash generated by operations before capital spending.
CapEx
$63.0M
Capital spending and related asset purchases.
FCF margin
1.6%
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 | $2.1B | $29.0M | $109.0M | -$80.0M | -3.9% |
| 2025-06-30 | $2.2B | $169.0M | $110.0M | $59.0M | 2.7% |
| 2025-09-30 | $2.1B | $76.0M | $97.0M | -$21.0M | -1.0% |
| 2025-12-31 | $2.0B | $95.0M | $63.0M | $32.0M | 1.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 50.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital expenditure reduction
Capital expenditure decreased compared to both the prior quarter and the year-ago quarter, which was the strongest observable factor supporting the positive free cash flow this quarter.
Lower capital expenditure directly improved free cash flow despite a decline in operating cash flow relative to last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than both the prior quarter and the year-ago quarter. Operating cash flow improved from the prior quarter but was lower than a year ago. Capital expenditure decreased compared to both periods, contributing to the positive free cash flow. The free cash flow margin turned positive from negative in the prior quarter but remained below the year-ago margin.
Compared to the prior quarter, free cash flow improved from negative to positive, driven by higher operating cash flow and lower capital expenditure. Compared to the same quarter last year, free cash flow was lower, as operating cash flow declined more than the reduction in capital expenditure.
Monitor whether operating cash flow can sustain or improve from the current level, as it remains below the year-ago quarter.