Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable sequentially and improved versus last year, but free cash flow turned negative due to operating cash flow weakness and higher capital spending. Cash conversion weakened sharply on both comparisons, driven solely by the change in operating cash flow.
- Operating cash flow fell significantly from both the prior quarter and the year-ago quarter, while capital expenditure increased from last year but decreased from last quarter. The resulting free cash flow margin moved from positive to negative, indicating a substantial deterioration in cash conversion.
- Compared to the immediately preceding quarter, revenue was about level while free cash flow shifted from a large positive to a negative figure, a notable weakening. Versus the same quarter one year earlier, revenue was higher but free cash flow turned from positive to negative, with operating cash flow significantly lower.
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
-$21.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$43.8M
Cash generated by operations before capital spending.
CapEx
$64.9M
Capital spending and related asset purchases.
FCF margin
-1.3%
The share of revenue converted into free cash flow.
TTM FCF yield
2.1%
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 | $1.5B | $290.2M | $49.3M | $240.9M | 15.7% |
| 2025-09-30 | $1.6B | $573.7M | $57.5M | $516.2M | 33.2% |
| 2025-12-31 | $1.6B | $450.9M | $97.4M | $353.5M | 22.5% |
| 2026-03-31 | $1.6B | $43.8M | $64.9M | -$21.1M | -1.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -5.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Weakness
Operating cash flow dropped substantially from both the prior quarter and the year-ago period, while revenue remained relatively stable. This divergence points to a notable change in cash generation efficiency that merits close observation.
The decline in operating cash flow caused free cash flow to become negative, reversing a prior positive trend.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow fell significantly from both the prior quarter and the year-ago quarter, while capital expenditure increased from last year but decreased from last quarter. The resulting free cash flow margin moved from positive to negative, indicating a substantial deterioration in cash conversion.
Compared to the immediately preceding quarter, revenue was about level while free cash flow shifted from a large positive to a negative figure, a notable weakening. Versus the same quarter one year earlier, revenue was higher but free cash flow turned from positive to negative, with operating cash flow significantly lower.
Monitor operating cash flow trajectory, as its decline was the primary factor behind the 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 | $50.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.1% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.