Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative as capital expenditure exceeded operating cash flow. Revenue was unchanged from a year earlier, while operating cash flow declined and capital spending increased.
- Revenue was higher than the prior quarter but flat year over year. Operating cash flow improved sequentially but was lower than the same quarter last year. Capital expenditure remained at the same level as the prior quarter and increased from a year ago. Consequently, free cash flow was negative and the free cash flow margin weakened compared to the prior year, though it improved from the prior quarter.
- Compared to the immediately preceding quarter, free cash flow improved significantly as operating cash flow increased while capital expenditure held steady. Relative to the same quarter one year earlier, free cash flow turned from positive to negative, driven by lower operating cash flow and higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$280.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$723.5M
Cash generated by operations before capital spending.
CapEx
$1.0B
Capital spending and related asset purchases.
FCF margin
-14.3%
The share of revenue converted into free cash flow.
TTM FCF yield
-6.7%
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 | $723.5M | Cash generated by operations before capital spending. |
| Capital expenditures | $1.0B | Capital spending used to bridge CFO to FCF. |
| Free cash flow | -$280.1M | 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 | $816.4M | $288.8M | $536.0M | -$247.2M | -30.3% |
| 2022-09-30 | $722.6M | $48.3M | $718.4M | -$670.1M | -92.7% |
| 2022-12-31 | $1.5B | $188.9M | $795.7M | -$606.8M | -40.9% |
| 2023-03-31 | $1.5B | $2.7B | $619.7M | $2.1B | 135.2% |
| 2023-06-30 | $662.7M | $328.8M | $668.1M | -$339.3M | -51.2% |
| 2023-09-30 | $587.6M | $238.2M | $722.5M | -$484.3M | -82.4% |
| 2023-12-31 | $1.2B | $245.3M | $769.6M | -$524.4M | -45.3% |
| 2024-03-31 | $1.6B | $746.6M | $645.9M | $100.7M | 6.1% |
| 2024-06-30 | $701.5M | $411.2M | $713.6M | -$302.4M | -43.1% |
| 2024-09-30 | $657.9M | $330.7M | $808.0M | -$477.3M | -72.5% |
| 2024-12-31 | $1.2B | $282.0M | $891.2M | -$609.2M | -51.8% |
| 2025-03-31 | $2.0B | $922.9M | $839.7M | $83.3M | 4.3% |
| 2025-06-30 | $838.8M | $496.4M | $866.9M | -$370.6M | -44.2% |
| 2025-09-30 | $737.5M | $348.1M | $963.6M | -$615.5M | -83.5% |
| 2025-12-31 | $1.3B | $308.1M | $1.0B | -$725.3M | -54.0% |
| 2026-03-31 | $2.0B | $723.5M | $1.0B | -$280.1M | -14.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -48.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 51.1% | 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 versus capital spending
Operating cash flow increased from the prior quarter but remained below the year-ago level, while capital expenditure was unchanged sequentially and higher year over year.
The combination resulted in negative free cash flow for the quarter, a reversal from the positive free cash flow in the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter but flat year over year. Operating cash flow improved sequentially but was lower than the same quarter last year. Capital expenditure remained at the same level as the prior quarter and increased from a year ago. Consequently, free cash flow was negative and the free cash flow margin weakened compared to the prior year, though it improved from the prior quarter.
Compared to the immediately preceding quarter, free cash flow improved significantly as operating cash flow increased while capital expenditure held steady. Relative to the same quarter one year earlier, free cash flow turned from positive to negative, driven by lower operating cash flow and higher capital expenditure.
Monitor the company's ability to fund capital expenditure through internal cash flows, as the filing notes reliance on both internal and external financing.
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 | $29.8B | Used as the denominator for FCF yield. |
| TTM FCF yield | -6.7% | 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.
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. |