Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow improved significantly compared to both the prior quarter and the same quarter last year, but free cash flow turned more negative as capital expenditure increased substantially. The cash conversion metrics weakened due to a larger gap between operating cash flow and capital spending.
- Revenue conversion into operating cash flow strengthened, with operating cash flow exceeding revenue, but capital expenditure exceeded operating cash flow by a wide margin, resulting in a highly negative free cash flow and a weakened free cash flow margin.
- Compared to the prior quarter, revenue and operating cash flow were higher, but capital expenditure also increased, leading to a more negative free cash flow and a lower free cash flow margin. Versus the same quarter a year ago, revenue and operating cash flow improved markedly, yet the larger capital expenditure widened the free cash flow deficit and deepened the negative margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$10.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$4.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.0B
Cash generated by operations before capital spending.
CapEx
$7.7B
Capital spending and related asset purchases.
FCF margin
-226.7%
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 | $1.2B | -$251.1M | $2.5B | -$2.7B | -223.0% |
| 2025-09-30 | $1.4B | $1.7B | $2.4B | -$699.8M | -51.3% |
| 2025-12-31 | $1.6B | $1.6B | $4.1B | -$2.5B | -159.1% |
| 2026-03-31 | $2.1B | $3.0B | $7.7B | -$4.7B | -226.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 636.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 370.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$22.6B | 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 growth
Capital expenditure increased markedly compared to both the prior quarter and the year-ago quarter, far outpacing the growth in operating cash flow. This drove a significant negative swing in free cash flow and a lower free cash flow margin.
The strong ramp in capital expenditure is the most concrete observable driver behind the weakened free cash flow metrics.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue conversion into operating cash flow strengthened, with operating cash flow exceeding revenue, but capital expenditure exceeded operating cash flow by a wide margin, resulting in a highly negative free cash flow and a weakened free cash flow margin.
Compared to the prior quarter, revenue and operating cash flow were higher, but capital expenditure also increased, leading to a more negative free cash flow and a lower free cash flow margin. Versus the same quarter a year ago, revenue and operating cash flow improved markedly, yet the larger capital expenditure widened the free cash flow deficit and deepened the negative margin.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the widening gap is the primary factor behind the deteriorating 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 | n/a | Used as the denominator for FCF yield. |
| TTM FCF yield | n/a | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |