Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative in the first quarter, with a margin that improved slightly from the prior quarter but weakened compared to the same quarter last year. Operating cash flow was lower than both the preceding quarter and the year-ago period, while capital expenditure increased year over year.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow declined sequentially and year over year, resulting in a free cash flow margin that was less negative than the prior quarter but more negative than the year-ago quarter.
- Compared to the prior quarter, free cash flow improved slightly as capital expenditure decreased more than operating cash flow. Versus the same quarter last year, free cash flow weakened due to higher capital expenditure and lower operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$354.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$305.0M
Cash generated by operations before capital spending.
CapEx
$659.0M
Capital spending and related asset purchases.
FCF margin
-29.4%
The share of revenue converted into free cash flow.
TTM FCF yield
-4.7%
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 | $1.3B | $301.0M | $733.0M | -$432.0M | -34.0% |
| 2025-09-30 | $1.5B | $764.0M | $797.0M | -$33.0M | -2.3% |
| 2025-12-31 | $1.3B | $663.0M | $1.0B | -$385.0M | -30.4% |
| 2026-03-31 | $1.2B | $305.0M | $659.0M | -$354.0M | -29.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -180.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 54.8% | 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.
Capital Expenditure Growth
Capital expenditure increased compared to the same quarter last year, while operating cash flow declined. This combination was the strongest observable factor behind the more negative free cash flow margin.
Higher capital spending outpaced operating cash flow, contributing to a larger free cash outflow year over year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow declined sequentially and year over year, resulting in a free cash flow margin that was less negative than the prior quarter but more negative than the year-ago quarter.
Compared to the prior quarter, free cash flow improved slightly as capital expenditure decreased more than operating cash flow. Versus the same quarter last year, free cash flow weakened due to higher capital expenditure and lower operating cash flow.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the gap between them widened year over year.
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 | $25.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | -4.7% | 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.