Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was deeply negative this quarter, driven by a large operating cash outflow and elevated capital spending. The cash conversion weakened sharply compared to both the prior quarter and the same quarter last year.
- Revenue was higher than the year-ago quarter, but operating cash flow turned more negative, resulting in a free cash flow margin that was lower than both the prior quarter and the same quarter last year. Capital expenditure was higher than the year-ago quarter but lower than the prior quarter.
- Compared to the prior quarter, revenue was lower, operating cash flow shifted from positive to negative, and free cash flow turned from positive to deeply negative. Compared to the same quarter last year, revenue was higher, operating cash flow was more negative, and free cash flow was more negative.
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
-$877.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$541.0M
Cash generated by operations before capital spending.
CapEx
$336.0M
Capital spending and related asset purchases.
FCF margin
-18.8%
The share of revenue converted into free cash flow.
TTM FCF yield
-5.1%
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 | $4.0B | -$1.1B | $406.0M | -$1.5B | -36.8% |
| 2025-09-30 | $4.4B | $854.0M | $469.0M | $385.0M | 8.8% |
| 2025-12-31 | $23.8B | $1.3B | $538.0M | $809.0M | 3.4% |
| 2026-03-31 | $4.7B | -$541.0M | $336.0M | -$877.0M | -18.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1289.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.5B | 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 and significantly lower than both the prior quarter and the year-ago quarter. This was the strongest observable driver of the negative free cash flow.
The large operating cash outflow overwhelmed the lower capital expenditure relative to the prior quarter, resulting in a deeply negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the year-ago quarter, but operating cash flow turned more negative, resulting in a free cash flow margin that was lower than both the prior quarter and the same quarter last year. Capital expenditure was higher than the year-ago quarter but lower than the prior quarter.
Compared to the prior quarter, revenue was lower, operating cash flow shifted from positive to negative, and free cash flow turned from positive to deeply negative. Compared to the same quarter last year, revenue was higher, operating cash flow was more negative, and free cash flow was more negative.
Monitor whether the large operating cash outflow persists in the coming quarter, as it is the primary factor behind the negative free cash flow.
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 | $22.6B | Used as the denominator for FCF yield. |
| TTM FCF yield | -5.1% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | -28.5x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.