Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company generated negative free cash flow for the quarter, as operating cash flow was outweighed by capital expenditure. Revenue improved compared to both the prior quarter and the same quarter last year, but cash conversion remained weak.
- Revenue was positive, yet operating cash flow was negative, indicating that cash conversion lagged earnings. Capital expenditure exceeded operating cash flow, resulting in negative free cash flow and a negative free cash flow margin.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow swung from positive to negative, free cash flow turned from positive to negative, and free cash flow margin weakened. Versus the same quarter one year earlier, revenue was higher, operating cash flow improved (though still negative), free cash flow also improved (though negative), and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$179.0M
Cash generated by operations before capital spending.
CapEx
$1.3B
Capital spending and related asset purchases.
FCF margin
-6.5%
The share of revenue converted into free cash flow.
TTM FCF yield
-0.6%
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 | -$179.0M | Cash generated by operations before capital spending. |
| Capital expenditures | $1.3B | Capital spending used to bridge CFO to FCF. |
| Free cash flow | -$1.5B | 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 | $16.7B | $81.0M | $263.0M | -$182.0M | -1.1% |
| 2022-09-30 | $16.0B | $3.2B | $284.0M | $2.9B | 18.2% |
| 2022-12-31 | $20.0B | $3.5B | $326.0M | $3.1B | 15.7% |
| 2023-03-31 | $17.9B | -$318.0M | $468.0M | -$786.0M | -4.4% |
| 2023-06-30 | $19.8B | $2.9B | $296.0M | $2.6B | 13.1% |
| 2023-09-30 | $18.1B | $22.0M | $332.0M | -$310.0M | -1.7% |
| 2023-12-31 | $22.0B | $3.4B | $431.0M | $3.0B | 13.4% |
| 2024-03-31 | $16.6B | -$3.4B | $567.0M | -$3.9B | -23.7% |
| 2024-06-30 | $16.9B | -$3.9B | $404.0M | -$4.3B | -25.7% |
| 2024-09-30 | $17.8B | -$1.3B | $611.0M | -$2.0B | -11.0% |
| 2024-12-31 | $15.2B | -$3.5B | $648.0M | -$4.1B | -26.9% |
| 2025-03-31 | $19.5B | -$1.6B | $674.0M | -$2.3B | -11.7% |
| 2025-06-30 | $22.7B | $227.0M | $427.0M | -$200.0M | -0.9% |
| 2025-09-30 | $23.3B | $1.1B | $885.0M | $238.0M | 1.0% |
| 2025-12-31 | $23.9B | $1.3B | $956.0M | $375.0M | 1.6% |
| 2026-03-31 | $22.2B | -$179.0M | $1.3B | -$1.5B | -6.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 36350.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$37.5B | 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 weakness
Operating cash flow was negative despite positive revenue, and it decreased markedly from the prior quarter. This was the primary factor behind the negative free cash flow.
Free cash flow remained negative for the quarter, with the deficit narrowing compared to the same quarter last year but widening from the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was positive, yet operating cash flow was negative, indicating that cash conversion lagged earnings. Capital expenditure exceeded operating cash flow, resulting in negative free cash flow and a negative free cash flow margin.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow swung from positive to negative, free cash flow turned from positive to negative, and free cash flow margin weakened. Versus the same quarter one year earlier, revenue was higher, operating cash flow improved (though still negative), free cash flow also improved (though negative), and free cash flow margin improved.
Monitor the relationship between operating cash flow and capital expenditure, as capital expenditure exceeded total operating cash flow this quarter.
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 | $171.1B | Used as the denominator for FCF yield. |
| TTM FCF yield | -0.6% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | -200.5x | 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. |