Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved versus both the prior quarter and the same quarter last year, though capital expenditure remained elevated. Free cash flow remained negative, but the deficit narrowed from the preceding quarter.
- Revenue rose while operating cash flow increased at a faster pace, leading to a higher cash conversion rate. Free cash flow margin improved but remained negative as capital expenditure exceeded operating cash flow.
- Compared to the prior quarter, revenue was higher and operating cash flow was higher, capital expenditure was stable, and free cash flow was less negative. Compared to the same quarter last year, revenue was higher, operating cash flow was higher, capital expenditure was higher, and free cash flow was slightly less negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$634.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$2.4B
Capital spending and related asset purchases.
FCF margin
-8.8%
The share of revenue converted into free cash flow.
TTM FCF yield
-4.5%
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 | $5.4B | $1.5B | $2.0B | -$502.0M | -9.3% |
| 2025-09-30 | $6.7B | $2.3B | $2.1B | $163.0M | 2.4% |
| 2025-12-31 | $5.4B | $1.2B | $2.4B | -$1.2B | -22.0% |
| 2026-03-31 | $7.2B | $1.7B | $2.4B | -$634.0M | -8.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -69.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 32.6% | 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.
Higher Operating Cash Flow
Operating cash flow improved sequentially and year-over-year, outpacing the growth in revenue. This was the strongest factor supporting the narrower free cash flow deficit.
The higher operating cash flow reduced the free cash flow shortfall despite stable capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow increased at a faster pace, leading to a higher cash conversion rate. Free cash flow margin improved but remained negative as capital expenditure exceeded operating cash flow.
Compared to the prior quarter, revenue was higher and operating cash flow was higher, capital expenditure was stable, and free cash flow was less negative. Compared to the same quarter last year, revenue was higher, operating cash flow was higher, capital expenditure was higher, and free cash flow was slightly less negative.
Monitor the trend of capital expenditure relative to operating cash flow, as the gap between them continues to drive 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 | $47.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | -4.5% | 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.