Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the preceding quarter but higher than the year-ago quarter. Operating cash flow declined substantially, leading to negative free cash flow and a weakened margin.
- Operating cash flow was insufficient to cover capital expenditure, resulting in negative free cash flow. The free cash flow margin turned negative, reflecting a deterioration in cash conversion efficiency compared to both prior periods.
- Compared to the immediately preceding quarter, all cash flow metrics were lower, with free cash flow turning from positive to negative. Versus the same quarter one year earlier, operating cash flow and free cash flow were also lower, while revenue was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$889.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$38.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$33.0M
Cash generated by operations before capital spending.
CapEx
$71.0M
Capital spending and related asset purchases.
FCF margin
-1.8%
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 | $2.2B | $288.0M | $73.0M | $215.0M | 9.9% |
| 2024-09-30 | $2.1B | $311.0M | $74.0M | $237.0M | 11.3% |
| 2024-12-31 | $2.3B | $575.0M | $100.0M | $475.0M | 21.1% |
| 2025-03-31 | $2.1B | $33.0M | $71.0M | -$38.0M | -1.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -22.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$970.0M | 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 pressure
Operating cash flow decreased sharply from both the prior quarter and the year-ago period. According to the filing, the decline was primarily driven by increased use of cash for accounts payable, higher accounts receivable, and increased investment in other assets, partially offset by higher cash earnings and reduced inventory.
This decline was the primary reason for the negative free cash flow and the weakened free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was insufficient to cover capital expenditure, resulting in negative free cash flow. The free cash flow margin turned negative, reflecting a deterioration in cash conversion efficiency compared to both prior periods.
Compared to the immediately preceding quarter, all cash flow metrics were lower, with free cash flow turning from positive to negative. Versus the same quarter one year earlier, operating cash flow and free cash flow were also lower, while revenue was higher.
Monitor the trajectory of operating cash flow, as the filing noted it was affected by higher accounts receivable and payments for accounts payable, partially offset by higher earnings and lower inventory.