Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared with both the prior quarter and the same quarter last year, while operating cash flow improved sequentially but declined year over year. Higher capital expenditure relative to last year drove a larger negative free cash flow margin, although the margin improved from the preceding quarter.
- Operating cash flow covered a smaller portion of capital expenditure than a year earlier, resulting in a wider free cash flow deficit. The cash conversion rate, as measured by free cash flow margin, remained negative and was weaker than last year's level.
- Compared with the immediately preceding quarter, free cash flow was higher (less negative) and the free cash flow margin improved, supported by slightly lower capital expenditure and higher operating cash flow. Versus the same quarter one year ago, free cash flow was lower (more negative) as capital expenditure increased substantially while operating cash flow declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$489.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$362.5M
Cash generated by operations before capital spending.
CapEx
$851.9M
Capital spending and related asset purchases.
FCF margin
-36.2%
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 | $1.4B | $323.9M | $627.3M | -$303.4M | -22.4% |
| 2025-09-30 | $1.8B | $937.7M | $712.3M | $225.4M | 12.8% |
| 2025-12-31 | $1.3B | $334.0M | $864.5M | -$530.5M | -41.1% |
| 2026-03-31 | $1.4B | $362.5M | $851.9M | -$489.4M | -36.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -323.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 63.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Elevated Capital Spending
Capital expenditure in the current quarter was higher than the year-ago period, which was the strongest observable factor behind the wider free cash flow deficit. Although spending decreased slightly from the prior quarter, it remained at a level that significantly outpaced operating cash flow.
The elevated capital spending continues to consume operating cash flow and contributes to persistent negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow covered a smaller portion of capital expenditure than a year earlier, resulting in a wider free cash flow deficit. The cash conversion rate, as measured by free cash flow margin, remained negative and was weaker than last year's level.
Compared with the immediately preceding quarter, free cash flow was higher (less negative) and the free cash flow margin improved, supported by slightly lower capital expenditure and higher operating cash flow. Versus the same quarter one year ago, free cash flow was lower (more negative) as capital expenditure increased substantially while operating cash flow declined.
Monitor changes in capital expenditure levels relative to operating cash flow, as 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 | $19.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | -5.5% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | -30.4x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.