Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were higher than both the prior quarter and the year-ago quarter. Free cash flow turned negative this quarter as capital expenditure rose and operating cash flow growth lagged the expansion in revenue.
- Operating cash flow was higher than the prior quarter but lower than the year-ago quarter, while capital expenditure increased from a year ago. The combination resulted in a free cash flow margin that shifted from positive a year earlier to negative this quarter.
- Compared to the prior quarter, revenue and operating cash flow improved. Compared to the same quarter one year earlier, revenue was higher but operating cash flow was lower, and capital expenditure increased, turning free cash flow from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
-$334.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$705.0M
Cash generated by operations before capital spending.
CapEx
$1.0B
Capital spending and related asset purchases.
FCF margin
-12.5%
The share of revenue converted into free cash flow.
TTM FCF yield
n/a
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 | $1.8B | $414.0M | $884.0M | -$470.0M | -26.1% |
| 2025-09-30 | $2.0B | $343.0M | $978.0M | -$635.0M | -32.2% |
| 2025-12-31 | $2.1B | $478.0M | n/a | n/a | n/a |
| 2026-03-31 | $2.7B | $705.0M | $1.0B | -$334.0M | -12.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -98.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 38.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$18.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure rose to a level that exceeded operating cash flow, driving free cash flow deeply negative. This contrasts with the year-ago quarter when capital expenditure was lower and operating cash flow covered it fully.
Higher capital expenditure was the strongest observable driver of the negative free cash flow in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the prior quarter but lower than the year-ago quarter, while capital expenditure increased from a year ago. The combination resulted in a free cash flow margin that shifted from positive a year earlier to negative this quarter.
Compared to the prior quarter, revenue and operating cash flow improved. Compared to the same quarter one year earlier, revenue was higher but operating cash flow was lower, and capital expenditure increased, turning free cash flow from positive to negative.
Monitor the gap between operating cash flow growth and revenue growth, as operating cash flow declined versus a year ago despite higher revenue.
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 | $23.2B | Used as the denominator for FCF yield. |
| TTM FCF yield | n/a | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | undefinedx | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.