Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the first quarter of fiscal 2026, CBRE Group reported negative free cash flow, driven by a significant operating cash outflow. Revenue was lower than the prior quarter but higher than the same quarter last year.
- Revenue generated during the quarter did not convert into positive operating cash flow, resulting in a negative free cash flow margin. Capital expenditure was lower than the previous quarter but higher than a year ago, yet the operating cash outflow was the primary factor behind the negative free cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all weakened, shifting from positive to negative. Versus the same quarter one year earlier, revenue improved, while operating cash flow, free cash flow, and free cash flow margin remained negative but showed a mixed change—operating cash outflow was larger, yet free cash flow margin was slightly less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$897.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$906.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$825.0M
Cash generated by operations before capital spending.
CapEx
$81.0M
Capital spending and related asset purchases.
FCF margin
-8.7%
The share of revenue converted into free cash flow.
TTM FCF yield
2.3%
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 | -$825.0M | Cash generated by operations before capital spending. |
| Capital expenditures | $81.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | -$906.0M | 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 | $7.6B | $454.4M | $54.7M | $399.8M | 5.3% |
| 2022-09-30 | $7.4B | $753.9M | $64.3M | $689.6M | 9.3% |
| 2022-12-31 | $8.0B | $814.2M | $99.0M | $715.2M | 8.9% |
| 2023-03-31 | $7.3B | -$745.0M | $60.0M | -$805.0M | -11.0% |
| 2023-06-30 | $7.6B | -$11.0M | $75.0M | -$86.0M | -1.1% |
| 2023-09-30 | $7.7B | $383.0M | $76.0M | $307.0M | 4.0% |
| 2023-12-31 | $8.9B | $853.0M | $94.0M | $759.0M | 8.6% |
| 2024-03-31 | $7.8B | -$492.0M | $68.0M | -$560.0M | -7.2% |
| 2024-06-30 | $8.3B | $287.0M | $67.0M | $220.0M | 2.7% |
| 2024-09-30 | $8.9B | $573.0M | $79.0M | $494.0M | 5.6% |
| 2024-12-31 | $10.2B | $1.3B | $93.0M | $1.2B | 12.2% |
| 2025-03-31 | $8.8B | -$546.0M | $64.0M | -$610.0M | -6.9% |
| 2025-06-30 | $9.6B | $57.0M | $74.0M | -$17.0M | -0.2% |
| 2025-09-30 | $10.1B | $827.0M | $84.0M | $743.0M | 7.4% |
| 2025-12-31 | $11.4B | $1.2B | $144.0M | $1.1B | 9.4% |
| 2026-03-31 | $10.4B | -$825.0M | $81.0M | -$906.0M | -8.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -284.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.4B | 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 turned sharply negative this quarter, reversing from a positive level in the prior quarter and worsening compared to the same quarter last year. This is the strongest observable driver of the negative free cash flow.
The large operating cash outflow directly caused free cash flow to be negative, despite lower capital expenditure relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue generated during the quarter did not convert into positive operating cash flow, resulting in a negative free cash flow margin. Capital expenditure was lower than the previous quarter but higher than a year ago, yet the operating cash outflow was the primary factor behind the negative free cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all weakened, shifting from positive to negative. Versus the same quarter one year earlier, revenue improved, while operating cash flow, free cash flow, and free cash flow margin remained negative but showed a mixed change—operating cash outflow was larger, yet free cash flow margin was slightly less negative.
Monitor the trajectory of operating cash flow, as the current quarter's significant outflow is the primary driver of 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 | $39.0B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.3% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 47.3x | 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. |