Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable, but operating cash flow turned negative, resulting in negative free cash flow and margin. This marks a sharp reversal from the positive cash generation seen in both the prior quarter and the same quarter last year.
- With revenue unchanged, operating cash flow fell from positive to negative, while capital expenditure was broadly similar. The combination produced negative free cash flow and a negative free cash flow margin, a significant deterioration in cash conversion efficiency.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were substantially lower, flipping from positive to negative. Versus the same quarter one year earlier, both metrics also weakened markedly, despite similar revenue levels.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$380.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$165.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$122.0M
Cash generated by operations before capital spending.
CapEx
$43.0M
Capital spending and related asset purchases.
FCF margin
-9.9%
The share of revenue converted into free cash flow.
TTM FCF yield
3.3%
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 | $2.0B | $294.0M | $75.0M | $219.0M | 11.0% |
| 2025-09-30 | $1.4B | $93.0M | $36.0M | $57.0M | 4.0% |
| 2025-12-31 | $1.7B | $311.0M | $42.0M | $269.0M | 16.1% |
| 2026-03-31 | $1.7B | -$122.0M | $43.0M | -$165.0M | -9.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -88.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Turned Negative
Operating cash flow shifted from positive in both the prior quarter and the year-ago quarter to negative this quarter, while revenue remained flat. This swing is the strongest observable factor behind the negative free cash flow.
It drove free cash flow from a positive margin to a negative margin, a material weakening in cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue unchanged, operating cash flow fell from positive to negative, while capital expenditure was broadly similar. The combination produced negative free cash flow and a negative free cash flow margin, a significant deterioration in cash conversion efficiency.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were substantially lower, flipping from positive to negative. Versus the same quarter one year earlier, both metrics also weakened markedly, despite similar revenue levels.
Monitor whether operating cash flow can return to positive territory in the coming quarter, as it is the primary driver of 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 | $11.5B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.3% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.