Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter and higher than a year ago. Free cash flow turned more negative compared to both periods, driven by a larger gap between operating cash flow and capital expenditure.
- Operating cash flow decreased from the prior quarter but was slightly lower than a year ago, while capital expenditure was slightly lower than the prior quarter but significantly higher than a year ago. The resulting free cash flow margin weakened from both comparison periods, reflecting a lower conversion of revenue into free cash flow.
- Compared to the prior quarter, operating cash flow was lower and free cash flow was more negative, despite similar revenue and slightly lower capital expenditure. Versus the same quarter a year ago, revenue was higher but operating cash flow was slightly lower, and capital expenditure was substantially higher, resulting in a swing from positive to negative free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$998.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$539.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$717.0M
Cash generated by operations before capital spending.
CapEx
$1.3B
Capital spending and related asset purchases.
FCF margin
-22.1%
The share of revenue converted into free cash flow.
TTM FCF yield
-1.0%
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 | $2.3B | $944.0M | $989.0M | -$45.0M | -2.0% |
| 2025-09-30 | $2.3B | $1.0B | $1.1B | -$122.0M | -5.3% |
| 2025-12-31 | $2.4B | $1.1B | $1.4B | -$292.0M | -12.1% |
| 2026-03-31 | $2.4B | $717.0M | $1.3B | -$539.0M | -22.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -129.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 51.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$18.4B | 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 Increase
Capital expenditure was substantially higher than a year ago and remained elevated relative to the prior quarter, outpacing the growth in operating cash flow. This was the strongest observable driver of the decline in free cash flow.
The elevated capital expenditure level directly contributed to the negative free cash flow and the weakened free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased from the prior quarter but was slightly lower than a year ago, while capital expenditure was slightly lower than the prior quarter but significantly higher than a year ago. The resulting free cash flow margin weakened from both comparison periods, reflecting a lower conversion of revenue into free cash flow.
Compared to the prior quarter, operating cash flow was lower and free cash flow was more negative, despite similar revenue and slightly lower capital expenditure. Versus the same quarter a year ago, revenue was higher but operating cash flow was slightly lower, and capital expenditure was substantially higher, resulting in a swing from positive to negative free cash flow.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the widening gap was the primary factor behind the more negative 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 | $100.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | -1.0% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | -119.6x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.