Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned deeply negative this quarter as operating cash flow reversed to an outflow while capital expenditure rose sharply. Revenue increased from both the prior quarter and the same quarter last year, but the cash conversion weakened significantly.
- Revenue was higher than both the preceding quarter and the year-ago quarter, yet operating cash flow fell from a positive inflow to a negative outflow, and capital expenditure increased. As a result, free cash flow and free cash flow margin both turned negative and worsened compared to both prior periods.
- Compared to the immediately preceding quarter, revenue improved while operating cash flow weakened from positive to negative, capital expenditure increased, and free cash flow and margin both deteriorated. Versus the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and margin all worsened, with capital expenditure rising.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$538.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$383.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$93.8M
Cash generated by operations before capital spending.
CapEx
$289.7M
Capital spending and related asset purchases.
FCF margin
-21.2%
The share of revenue converted into free cash flow.
TTM FCF yield
-0.9%
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 | $1.5B | $130.3M | $131.3M | -$1.1M | -0.1% |
| 2025-09-30 | $1.6B | $46.0M | $103.9M | -$58.0M | -3.7% |
| 2025-12-31 | $1.7B | $57.9M | $153.6M | -$95.7M | -5.7% |
| 2026-03-31 | $1.8B | -$93.8M | $289.7M | -$383.5M | -21.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -200.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 16.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.6B | 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 surge
Capital expenditure increased substantially from both the prior quarter and the year-ago quarter, contributing to the large negative free cash flow despite higher revenue.
The elevated capital expenditure was the strongest observable driver of the free cash flow decline this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the preceding quarter and the year-ago quarter, yet operating cash flow fell from a positive inflow to a negative outflow, and capital expenditure increased. As a result, free cash flow and free cash flow margin both turned negative and worsened compared to both prior periods.
Compared to the immediately preceding quarter, revenue improved while operating cash flow weakened from positive to negative, capital expenditure increased, and free cash flow and margin both deteriorated. Versus the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and margin all worsened, with capital expenditure rising.
Monitor whether operating cash flow can return to positive territory in the next quarter given the current negative level.
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 | $60.8B | Used as the denominator for FCF yield. |
| TTM FCF yield | -0.9% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | -115.9x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.