Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow turned positive after two consecutive quarters of negative free cash flow, supported by higher operating cash flow versus the prior quarter. Revenue was stable compared to the same quarter one year earlier, while operating cash flow was lower year over year.
- Operating cash flow as a proportion of revenue improved relative to the immediate prior quarter, but declined compared to the same quarter one year earlier. Capital expenditure decreased from both comparison periods, which helped convert a negative free cash flow margin into a positive one.
- Compared to the immediately preceding quarter, free cash flow improved from negative to positive, driven by higher operating cash flow and slightly lower capital expenditure. Versus the same quarter one year earlier, free cash flow also improved from negative to positive, despite lower operating cash flow, as capital expenditure was significantly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$107.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$13.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$301.6M
Cash generated by operations before capital spending.
CapEx
$288.3M
Capital spending and related asset purchases.
FCF margin
0.3%
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 |
|---|---|---|---|---|---|
| 2024-09-30 | $4.3B | $759.9M | $621.4M | $138.5M | 3.2% |
| 2024-12-31 | $3.9B | $346.9M | $453.2M | -$106.3M | -2.7% |
| 2025-03-31 | $4.4B | $152.6M | $305.5M | -$152.9M | -3.5% |
| 2025-06-30 | $4.6B | $301.6M | $288.3M | $13.3M | 0.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 4.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.3B | 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 recovery
Operating cash flow in the current quarter was higher than the immediate prior quarter, reversing the negative free cash flow trend. This was the strongest observable driver of the quarter's positive free cash flow.
Free cash flow improved from negative to positive, and free cash flow margin turned from negative to positive.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue improved relative to the immediate prior quarter, but declined compared to the same quarter one year earlier. Capital expenditure decreased from both comparison periods, which helped convert a negative free cash flow margin into a positive one.
Compared to the immediately preceding quarter, free cash flow improved from negative to positive, driven by higher operating cash flow and slightly lower capital expenditure. Versus the same quarter one year earlier, free cash flow also improved from negative to positive, despite lower operating cash flow, as capital expenditure was significantly lower.
Monitor the level of capital expenditure relative to operating cash flow, as the quarter's free cash flow improvement was partly due to reduced spending.