Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive, driving free cash flow into positive territory after two consecutive negative quarters. Revenue increased compared to both the prior quarter and the same quarter last year, while capital expenditure remained relatively stable.
- Revenue rose from the prior quarter, and operating cash flow improved from negative to positive, resulting in a positive free cash flow margin. Capital expenditure was slightly higher than the prior quarter but lower than the same quarter last year, supporting the conversion of revenue into free cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow margin turning positive. Versus the same quarter one year earlier, revenue was higher, and both operating cash flow and free cash flow shifted from negative to positive, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$203.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$96.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$128.4M
Cash generated by operations before capital spending.
CapEx
$31.9M
Capital spending and related asset purchases.
FCF margin
5.4%
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 |
|---|---|---|---|---|---|
| 2024-12-31 | $1.4B | -$4.8M | $43.4M | -$48.2M | -3.5% |
| 2025-03-31 | $1.6B | $279.0M | $54.1M | $224.9M | 14.2% |
| 2025-06-30 | $1.5B | -$44.7M | $25.1M | -$69.8M | -4.6% |
| 2025-09-30 | $1.8B | $128.4M | $31.9M | $96.5M | 5.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -72.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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.
Operating Cash Flow Turnaround
Operating cash flow improved from negative in both the prior quarter and the year-ago quarter to positive this quarter. This shift was the primary factor behind the positive free cash flow and margin.
The positive operating cash flow directly enabled the company to generate free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose from the prior quarter, and operating cash flow improved from negative to positive, resulting in a positive free cash flow margin. Capital expenditure was slightly higher than the prior quarter but lower than the same quarter last year, supporting the conversion of revenue into free cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow margin turning positive. Versus the same quarter one year earlier, revenue was higher, and both operating cash flow and free cash flow shifted from negative to positive, while capital expenditure was lower.
Monitor the trend in operating cash flow to see if it sustains the positive level achieved this quarter.