Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow turned negative despite revenue being slightly higher than a year ago. The decline was driven by a sharp reduction in operating cash flow, which more than offset lower capital expenditure relative to the prior quarter.
- Revenue was higher than the prior quarter and the year-ago quarter, but operating cash flow was substantially lower, resulting in a negative free cash flow margin.
- Compared to the prior quarter, revenue increased yet operating cash flow declined sharply, flipping free cash flow from positive to negative. Versus the same quarter last year, revenue was slightly higher but operating cash flow was lower, leading to negative free cash flow versus positive a year ago.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$15.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$79.0M
Cash generated by operations before capital spending.
CapEx
$94.0M
Capital spending and related asset purchases.
FCF margin
-0.3%
The share of revenue converted into free cash flow.
TTM FCF yield
2.9%
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 | $6.1B | $649.0M | $81.0M | $568.0M | 9.3% |
| 2025-09-30 | $5.6B | $341.0M | $117.0M | $224.0M | 4.0% |
| 2025-12-31 | $4.8B | $1.0B | $131.0M | $909.0M | 18.8% |
| 2026-03-31 | $5.3B | $79.0M | $94.0M | -$15.0M | -0.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -6.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.8B | 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 fell significantly from both the prior quarter and the year-ago period, while revenue remained relatively stable.
This caused free cash flow to turn negative and the free cash flow margin to weaken.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter and the year-ago quarter, but operating cash flow was substantially lower, resulting in a negative free cash flow margin.
Compared to the prior quarter, revenue increased yet operating cash flow declined sharply, flipping free cash flow from positive to negative. Versus the same quarter last year, revenue was slightly higher but operating cash flow was lower, leading to negative free cash flow versus positive a year ago.
Monitor whether operating cash flow can recover to support positive 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 | $57.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.9% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 40.8x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.