Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow and free cash flow turned negative, resulting in a negative free cash flow margin, which weakened from the prior quarter but improved compared to the year-ago quarter.
- Revenue was lower than the prior quarter, while operating cash flow shifted from positive to negative, and capital expenditure decreased slightly. The combination produced negative free cash flow and a negative free cash flow margin, indicating cash conversion weakened significantly from the prior quarter.
- Compared to the prior quarter, revenue was lower, operating cash flow and free cash flow turned from positive to negative, and free cash flow margin weakened. Compared to the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were less negative, and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$980.0M
Cash generated by operations before capital spending.
CapEx
$106.0M
Capital spending and related asset purchases.
FCF margin
-16.2%
The share of revenue converted into free cash flow.
TTM FCF yield
2.3%
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 | $5.4B | $1.4B | $89.0M | $1.3B | 23.5% |
| 2025-09-30 | $6.5B | $1.4B | $78.0M | $1.3B | 20.5% |
| 2025-12-31 | $7.0B | $2.3B | $130.0M | $2.1B | 30.6% |
| 2026-03-31 | $6.7B | -$980.0M | $106.0M | -$1.1B | -16.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -49.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.9B | 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 Swing
The strongest observable driver was the sharp reversal in operating cash flow from positive in the prior quarter to negative in the current quarter. This change, combined with a slight decrease in capital expenditure, drove free cash flow deeply negative.
The negative free cash flow and margin reflect a significant cash consumption period compared to the prior quarter.
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, while operating cash flow shifted from positive to negative, and capital expenditure decreased slightly. The combination produced negative free cash flow and a negative free cash flow margin, indicating cash conversion weakened significantly from the prior quarter.
Compared to the prior quarter, revenue was lower, operating cash flow and free cash flow turned from positive to negative, and free cash flow margin weakened. Compared to the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were less negative, and free cash flow margin improved.
Monitor the trajectory of operating cash flow, as it shifted from a large positive to a large negative 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 | $158.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.3% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 44.1x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.