Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company's cash conversion was negative in the current quarter, with a negative free cash flow margin. Compared to the previous quarter, performance weakened sharply, but relative to the same quarter one year earlier, the metrics improved.
- Revenue was higher than the prior year, yet operating cash flow remained negative. Capital expenditure, though lower than the prior year, still contributed to a negative free cash flow and a negative free cash flow margin.
- Versus the immediately preceding quarter, operating cash flow turned from positive to negative, and free cash flow margin declined significantly. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was less negative, capital expenditure was lower, and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$616.0M
Cash generated by operations before capital spending.
CapEx
$601.0M
Capital spending and related asset purchases.
FCF margin
-16.5%
The share of revenue converted into free cash flow.
TTM FCF yield
4.3%
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | -$616.0M | Cash generated by operations before capital spending. |
| Capital expenditures | $601.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | -$1.2B | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2024-03-31 | $6.5B | -$712.0M | $506.0M | -$1.2B | -18.6% |
| 2024-06-30 | $9.7B | $1.5B | $624.0M | $861.0M | 8.9% |
| 2024-09-30 | $10.5B | $1.5B | $505.0M | $981.0M | 9.3% |
| 2024-12-31 | $8.9B | $2.7B | $943.0M | $1.8B | 20.1% |
| 2025-03-31 | $6.8B | -$659.0M | $645.0M | -$1.3B | -19.3% |
| 2025-06-30 | $10.2B | $1.4B | $655.0M | $723.0M | 7.1% |
| 2025-09-30 | $11.1B | $2.0B | $592.0M | $1.4B | 12.6% |
| 2025-12-31 | $9.4B | $2.9B | $821.0M | $2.1B | 22.2% |
| 2026-03-31 | $7.4B | -$616.0M | $601.0M | -$1.2B | -16.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 691.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$15.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Higher revenue and lower capital expenditure
Revenue was higher than the same period in the prior year, while capital expenditure was lower. This combination, along with a less negative operating cash flow, led to an improved free cash flow margin compared to the prior year.
The improved free cash flow margin narrowed the cash outflow relative to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior year, yet operating cash flow remained negative. Capital expenditure, though lower than the prior year, still contributed to a negative free cash flow and a negative free cash flow margin.
Versus the immediately preceding quarter, operating cash flow turned from positive to negative, and free cash flow margin declined significantly. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was less negative, capital expenditure was lower, and free cash flow margin improved.
The total debt balance increased compared to both the prior quarter and the year-ago quarter, warranting continued monitoring.
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 | $69.4B | Used as the denominator for FCF yield. |
| TTM FCF yield | 4.3% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 28.2x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |