Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow was negative, leading to negative free cash flow and a negative margin. Revenue was higher than both the prior quarter and the same quarter last year, but cash conversion weakened significantly versus the prior quarter.
- Revenue increased, yet operating cash flow turned negative, resulting in negative free cash flow and a negative free cash flow margin. Capital expenditure was slightly lower than the prior quarter but higher than the year-ago quarter.
- Compared to the prior quarter, operating cash flow and free cash flow both weakened from positive to negative, and the margin dropped sharply. Versus the same quarter last year, operating cash flow and free cash flow improved (less negative), and the margin also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$107.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$56.6M
Cash generated by operations before capital spending.
CapEx
$51.1M
Capital spending and related asset purchases.
FCF margin
-8.5%
The share of revenue converted into free cash flow.
TTM FCF yield
5.5%
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 | $1.1B | $1.1B | $52.6M | $1.1B | 98.7% |
| 2025-09-30 | $1.2B | -$378.9M | $50.9M | -$429.8M | -36.7% |
| 2025-12-31 | $1.2B | $812.7M | $52.4M | $760.3M | 60.9% |
| 2026-03-31 | $1.3B | -$56.6M | $51.1M | -$107.7M | -8.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -30.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.8B | 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 Swing
Operating cash flow shifted from strongly positive in the prior quarter to negative in the current quarter, driving the free cash flow negative despite higher revenue. This is the most observable change in the cash conversion profile.
The negative operating cash flow is the primary reason free cash flow turned negative, reversing the prior quarter's strong cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, yet operating cash flow turned negative, resulting in negative free cash flow and a negative free cash flow margin. Capital expenditure was slightly lower than the prior quarter but higher than the year-ago quarter.
Compared to the prior quarter, operating cash flow and free cash flow both weakened from positive to negative, and the margin dropped sharply. Versus the same quarter last year, operating cash flow and free cash flow improved (less negative), and the margin also improved.
Monitor whether operating cash flow returns to positive levels in the coming quarter, as the current negative cash conversion contrasts with the prior quarter's strong positive generation.
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 | $23.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | 5.5% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 24.1x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.