Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
For the quarter, revenue was higher than both the prior quarter and the year-ago period, while operating cash flow declined from the prior quarter but stayed near the year-ago level. Free cash flow became further negative due to a substantial increase in capital expenditure, resulting in a much weaker margin.
- Revenue increased, but operating cash flow did not keep pace, falling from the prior quarter. The conversion of revenue into cash from operations weakened, and after significant capital spending, free cash flow turned deeply negative.
- Compared to the previous quarter, revenue improved, operating cash flow decreased, capital expenditure rose, and free cash flow worsened. Relative to the same quarter last year, revenue was slightly higher, operating cash flow was similar, capital expenditure was higher, and free cash flow was more negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$421.0M
Cash generated by operations before capital spending.
CapEx
$1.6B
Capital spending and related asset purchases.
FCF margin
-53.0%
The share of revenue converted into free cash flow.
TTM FCF yield
-4.1%
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 | $421.0M | Cash generated by operations before capital spending. |
| Capital expenditures | $1.6B | Capital spending used to bridge CFO to FCF. |
| Free cash flow | -$1.2B | 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 | $1.7B | $484.0M | $764.0M | -$280.0M | -16.2% |
| 2022-09-30 | $2.3B | $727.0M | $899.0M | -$172.0M | -7.5% |
| 2022-12-31 | $2.0B | $664.0M | $914.0M | -$250.0M | -12.2% |
| 2023-03-31 | $2.1B | $496.0M | $931.0M | -$435.0M | -21.1% |
| 2023-06-30 | $1.8B | $615.0M | $891.0M | -$276.0M | -15.7% |
| 2023-09-30 | $2.1B | $920.0M | $749.0M | $171.0M | 8.3% |
| 2023-12-31 | $1.6B | $533.0M | $1.0B | -$493.0M | -30.5% |
| 2024-03-31 | $1.8B | $492.0M | $890.0M | -$398.0M | -21.9% |
| 2024-06-30 | $1.7B | $557.0M | $1.0B | -$445.0M | -26.3% |
| 2024-09-30 | $2.2B | $897.0M | $1.1B | -$240.0M | -11.0% |
| 2024-12-31 | $1.9B | $817.0M | $1.3B | -$473.0M | -24.4% |
| 2025-03-31 | $2.1B | $431.0M | $1.1B | -$633.0M | -30.2% |
| 2025-06-30 | $2.2B | $862.0M | $1.1B | -$204.0M | -9.2% |
| 2025-09-30 | $2.7B | $1.1B | $988.0M | $116.0M | 4.3% |
| 2025-12-31 | $1.8B | $956.0M | $1.0B | -$54.0M | -3.0% |
| 2026-03-31 | $2.2B | $421.0M | $1.6B | -$1.2B | -53.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -322.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 72.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$20.1B | 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 Increase
Capital expenditure rose substantially compared to both the prior quarter and the year-ago period, outpacing the growth in revenue and operating cash flow.
The elevated capital spending was the main cause of the weakened free cash flow position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, but operating cash flow did not keep pace, falling from the prior quarter. The conversion of revenue into cash from operations weakened, and after significant capital spending, free cash flow turned deeply negative.
Compared to the previous quarter, revenue improved, operating cash flow decreased, capital expenditure rose, and free cash flow worsened. Relative to the same quarter last year, revenue was slightly higher, operating cash flow was similar, capital expenditure was higher, and free cash flow was more negative.
Monitor the level of capital expenditure relative to operating cash flow, as the current quarter's elevated spending was the primary factor behind the negative free cash flow.
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 | $31.3B | Used as the denominator for FCF yield. |
| TTM FCF yield | -4.1% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | -39.7x | 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. |