Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved versus both the prior quarter and the same quarter last year. However, free cash flow remained deeply negative, with a weakened margin relative to the preceding quarter.
- Operating cash flow, though higher than a year ago, declined from the prior quarter, while capital expenditure increased sequentially. The resulting free cash flow was more negative than both comparison periods, and the free cash flow margin widened on a year-over-year basis but narrowed sequentially.
- Compared with the prior quarter, operating cash flow was lower and capital expenditure was higher, leading to a weaker free cash flow result. Versus the same quarter a year ago, revenue and operating cash flow were higher, but the free cash flow deficit deepened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$829.0M
Cash generated by operations before capital spending.
CapEx
$2.3B
Capital spending and related asset purchases.
FCF margin
-44.7%
The share of revenue converted into free cash flow.
TTM FCF yield
-5.4%
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 | $3.3B | $1.3B | $2.0B | -$746.6M | -22.4% |
| 2025-09-30 | $3.8B | $2.1B | $1.9B | $246.0M | 6.5% |
| 2025-12-31 | $3.0B | $1.2B | $2.1B | -$909.7M | -30.7% |
| 2026-03-31 | $3.2B | $829.0M | $2.3B | -$1.4B | -44.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -364.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 70.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$29.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Spending Growth
Capital expenditure rose sequentially and year over year, outpacing the increase in operating cash flow. This was the primary factor widening the free cash flow shortfall.
Higher capital expenditure directly enlarged the negative free cash flow, making cash conversion less efficient this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow, though higher than a year ago, declined from the prior quarter, while capital expenditure increased sequentially. The resulting free cash flow was more negative than both comparison periods, and the free cash flow margin widened on a year-over-year basis but narrowed sequentially.
Compared with the prior quarter, operating cash flow was lower and capital expenditure was higher, leading to a weaker free cash flow result. Versus the same quarter a year ago, revenue and operating cash flow were higher, but the free cash flow deficit deepened.
Track the trend in capital expenditure relative to operating cash flow, as the elevated spending continues to pressure 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 | $52.4B | Used as the denominator for FCF yield. |
| TTM FCF yield | -5.4% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | -28.8x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.