Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened sharply compared to both the prior quarter and the same quarter one year earlier, as operating cash flow declined while capital expenditure increased. Cash conversion was notably lower, with free cash flow representing a minimal share of revenue.
- Revenue was lower than the prior quarter, and operating cash flow decreased substantially, while capital expenditure rose. This resulted in a very small free cash flow and a thin margin, indicating weakened cash conversion.
- Sequentially, revenue, operating cash flow, and free cash flow were all lower, and capital expenditure was higher. Compared with the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower, and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$35.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$373.4M
Cash generated by operations before capital spending.
CapEx
$337.8M
Capital spending and related asset purchases.
FCF margin
0.8%
The share of revenue converted into free cash flow.
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 |
|---|---|---|---|---|---|
| 2025-02-15 | $4.0B | $583.7M | $292.7M | $291.0M | 7.4% |
| 2025-05-10 | $4.5B | $769.0M | $345.9M | $423.1M | 9.5% |
| 2025-11-22 | $4.6B | $944.2M | $314.2M | $630.0M | 13.6% |
| 2026-02-14 | $4.3B | $373.4M | $337.8M | $35.6M | 0.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 7.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.9% | 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 Decline
The most observable driver was the substantial drop in operating cash flow relative to revenue, which fell from the prior quarter while capital expenditure increased. This combination compressed free cash flow to a minimal margin.
Free cash flow was significantly lower than both comparison periods, and the margin became negligible.
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, and operating cash flow decreased substantially, while capital expenditure rose. This resulted in a very small free cash flow and a thin margin, indicating weakened cash conversion.
Sequentially, revenue, operating cash flow, and free cash flow were all lower, and capital expenditure was higher. Compared with the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower, and capital expenditure was higher.
Monitor whether operating cash flow reverts toward levels more consistent with revenue, given the sharp decline in the current quarter.