Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned from deeply negative to modestly negative, driven by a substantial improvement in operating cash flow. Revenue held steady, while capital expenditure decreased significantly compared with both the prior quarter and the year-ago quarter.
- Despite revenue remaining unchanged, operating cash flow swung from negative to positive, lifting free cash flow margin from deep negative territory to near breakeven. Capital expenditure, though still above operating cash flow, declined sharply, reducing the cash drain.
- Compared with the immediately preceding quarter, free cash flow improved substantially as operating cash flow turned positive and capital expenditure fell. Versus the same quarter one year earlier, the improvement was similar: operating cash flow recovered from a negative position and spending was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$44.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$150.0M
Cash generated by operations before capital spending.
CapEx
$194.0M
Capital spending and related asset purchases.
FCF margin
-0.7%
The share of revenue converted into free cash flow.
TTM FCF yield
12.1%
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | $150.0M | Cash generated by operations before capital spending. |
| Capital expenditures | $194.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | -$44.0M | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $27.3B | $531.0M | $283.0M | $248.0M | 0.9% |
| 2022-09-30 | $24.7B | $4.0B | $341.0M | $3.7B | 14.9% |
| 2022-12-31 | $25.9B | $130.0M | $478.0M | -$348.0M | -1.3% |
| 2023-03-31 | $24.1B | -$1.6B | $327.0M | -$1.9B | -8.0% |
| 2023-06-30 | $25.2B | $2.5B | $287.0M | $2.2B | 8.8% |
| 2023-09-30 | $6.4B | $992.0M | $441.0M | $551.0M | 8.6% |
| 2023-12-31 | $23.0B | $2.6B | $439.0M | $2.1B | 9.3% |
| 2024-03-31 | $5.9B | $700.0M | $328.0M | $372.0M | 6.3% |
| 2024-06-30 | $6.2B | $468.0M | $362.0M | $106.0M | 1.7% |
| 2024-09-30 | $6.0B | $1.3B | $381.0M | $919.0M | 15.3% |
| 2024-12-31 | $6.3B | $322.0M | $492.0M | -$170.0M | -2.7% |
| 2025-03-31 | $6.1B | -$342.0M | $291.0M | -$633.0M | -10.3% |
| 2025-06-30 | $6.3B | $4.3B | $305.0M | $4.0B | 63.0% |
| 2025-09-30 | $6.4B | $1.8B | $296.0M | $1.5B | 23.6% |
| 2025-12-31 | $6.1B | -$313.0M | $356.0M | -$669.0M | -11.1% |
| 2026-03-31 | $6.1B | $150.0M | $194.0M | -$44.0M | -0.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -14.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.0B | 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 improved from deeply negative to positive, which was the primary factor behind the narrower free cash flow deficit. Revenue remained stable at the same level as both comparison periods.
The swing in operating cash flow was the most observable driver of the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite revenue remaining unchanged, operating cash flow swung from negative to positive, lifting free cash flow margin from deep negative territory to near breakeven. Capital expenditure, though still above operating cash flow, declined sharply, reducing the cash drain.
Compared with the immediately preceding quarter, free cash flow improved substantially as operating cash flow turned positive and capital expenditure fell. Versus the same quarter one year earlier, the improvement was similar: operating cash flow recovered from a negative position and spending was lower.
Monitor whether operating cash flow can sustain its positive trajectory in the coming quarters.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $39.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | 12.1% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 9.7x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |