Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative in the current quarter, driven by negative operating cash flow and higher capital expenditure. This represents a significant weakening from the prior quarter's positive free cash flow and a further decline from the near break-even level a year ago.
- Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Operating cash flow turned negative, a sharp reversal from positive levels in both comparison periods. Capital expenditure increased from the prior quarter but decreased from the year ago quarter. As a result, free cash flow margin turned negative, compared to positive in the prior quarter and slightly negative a year ago.
- Compared to the immediately preceding quarter, free cash flow weakened substantially as operating cash flow swung from positive to negative and capital expenditure rose. Versus the same quarter one year earlier, free cash flow also worsened, despite higher revenue and lower capital expenditure, due to the negative operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$362.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$143.0M
Cash generated by operations before capital spending.
CapEx
$219.0M
Capital spending and related asset purchases.
FCF margin
-7.1%
The share of revenue converted into free cash flow.
TTM FCF yield
8.9%
TTM FCF divided by market capitalization.
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 |
|---|---|---|---|---|---|
| 2025-06-30 | $5.2B | $510.0M | $149.0M | $361.0M | 6.9% |
| 2025-09-30 | $5.2B | $584.0M | $143.0M | $441.0M | 8.5% |
| 2025-12-31 | $5.2B | $818.0M | $167.0M | $651.0M | 12.6% |
| 2026-03-31 | $5.1B | -$143.0M | $219.0M | -$362.0M | -7.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -191.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | 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.
Negative Operating Cash Flow
Operating cash flow turned negative in the current quarter, a significant deterioration from positive levels in both the prior quarter and the year ago quarter. This was the primary factor behind the negative free cash flow.
The negative operating cash flow indicates that the company's core operations did not generate sufficient cash to cover capital expenditure, resulting in a cash outflow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Operating cash flow turned negative, a sharp reversal from positive levels in both comparison periods. Capital expenditure increased from the prior quarter but decreased from the year ago quarter. As a result, free cash flow margin turned negative, compared to positive in the prior quarter and slightly negative a year ago.
Compared to the immediately preceding quarter, free cash flow weakened substantially as operating cash flow swung from positive to negative and capital expenditure rose. Versus the same quarter one year earlier, free cash flow also worsened, despite higher revenue and lower capital expenditure, due to the negative operating cash flow.
Monitor whether operating cash flow can return to positive levels 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 | $12.3B | Used as the denominator for FCF yield. |
| TTM FCF yield | 8.9% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.