Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter showed a negative free cash flow, with operating cash flow insufficient to cover elevated capital expenditure. Revenue was stable compared to a year earlier but improved from the prior quarter.
- Revenue held steady versus the same quarter last year and rose from the preceding quarter. Operating cash flow declined from both periods, while capital expenditure increased from the year-ago quarter but decreased from the prior quarter. The resulting free cash flow and free cash flow margin weakened compared to both the prior quarter and the same quarter one year earlier.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow was lower, while capital expenditure was lower. Free cash flow and free cash flow margin both weakened. Compared to the same quarter one year earlier, revenue was stable, operating cash flow was lower, and capital expenditure was higher, resulting in a weakened free cash flow and free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$916.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$282.0M
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
-30.8%
The share of revenue converted into free cash flow.
TTM FCF yield
-9.3%
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 | $560.0M | $1.1B | -$569.0M | -29.1% |
| 2025-09-30 | $2.0B | $742.0M | $1.2B | -$480.0M | -24.1% |
| 2025-12-31 | $2.4B | $774.0M | $1.5B | -$707.0M | -29.0% |
| 2026-03-31 | $3.0B | $282.0M | $1.2B | -$916.0M | -30.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -289.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 40.3% | 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.
Capital Expenditure
Capital expenditure remained at a level that exceeded operating cash flow, sustaining a negative free cash flow. The absolute amount of capital expenditure was lower than the prior quarter but higher than the same quarter last year.
The sustained gap between operating cash flow and capital expenditure is the primary observable factor behind the negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue held steady versus the same quarter last year and rose from the preceding quarter. Operating cash flow declined from both periods, while capital expenditure increased from the year-ago quarter but decreased from the prior quarter. The resulting free cash flow and free cash flow margin weakened compared to both the prior quarter and the same quarter one year earlier.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow was lower, while capital expenditure was lower. Free cash flow and free cash flow margin both weakened. Compared to the same quarter one year earlier, revenue was stable, operating cash flow was lower, and capital expenditure was higher, resulting in a weakened free cash flow and free cash flow margin.
Monitor the trajectory of capital expenditure relative to operating cash flow to assess pressure on 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 | $28.6B | Used as the denominator for FCF yield. |
| TTM FCF yield | -9.3% | 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.