Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned strongly positive this quarter after a negative prior period, driven by a sharp swing in operating cash flow. Compared to the same quarter last year, free cash flow was slightly lower due to marginally weaker revenue and higher capital spending, though the free cash flow margin remained nearly unchanged.
- Revenue this quarter was lower than the prior quarter and also slightly below the year-ago level. Operating cash flow moved from a deep deficit in the prior quarter to a healthy surplus, while capital expenditure increased moderately relative to both periods. The combined effect produced a very strong free cash flow margin that mirrored the year-ago margin.
- Compared with the immediately preceding quarter, cash generation improved dramatically—operating cash flow and free cash flow reversed from negative to positive, and the margin rose sharply. Relative to the same quarter one year earlier, revenue, operating cash flow and free cash flow were all slightly lower, but the margin held stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$135.0M
Capital spending and related asset purchases.
FCF margin
44.2%
The share of revenue converted into free cash flow.
TTM FCF yield
3883636363.6%
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | $1.9B | Cash generated by operations before capital spending. |
| Capital expenditures | $135.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $1.8B | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $3.0B | $933.0M | $116.0M | $817.0M | 26.9% |
| 2022-09-30 | $3.2B | $270.0M | $74.0M | $196.0M | 6.1% |
| 2022-12-31 | $4.6B | -$531.0M | $79.0M | -$610.0M | -13.2% |
| 2023-03-31 | $4.1B | $1.6B | $84.0M | $1.5B | 36.3% |
| 2023-06-30 | $3.0B | $493.0M | $120.0M | $373.0M | 12.3% |
| 2023-09-30 | $3.2B | $1.0M | $71.0M | -$70.0M | -2.2% |
| 2023-12-31 | $4.2B | -$536.0M | $79.0M | -$615.0M | -14.5% |
| 2024-03-31 | $3.4B | $1.5B | $83.0M | $1.4B | 40.4% |
| 2024-06-30 | $3.1B | $899.0M | $112.0M | $787.0M | 25.5% |
| 2024-09-30 | $3.6B | $158.0M | $64.0M | $94.0M | 2.6% |
| 2024-12-31 | $5.1B | -$362.0M | $74.0M | -$436.0M | -8.6% |
| 2025-03-31 | $4.4B | $2.0B | $74.0M | $1.9B | 44.4% |
| 2025-06-30 | $3.3B | $1.5B | $119.0M | $1.4B | 42.4% |
| 2025-09-30 | $3.7B | -$130.0M | $104.0M | -$234.0M | -6.3% |
| 2025-12-31 | $5.2B | -$669.0M | $122.0M | -$791.0M | -15.3% |
| 2026-03-31 | $4.0B | $1.9B | $135.0M | $1.8B | 44.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1009.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | 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 recovery
The strongest observable driver was the reversal of operating cash flow from a negative figure in the prior quarter to a robust positive amount this quarter. This swing single-handedly transformed free cash flow from negative to positive and restored a high margin.
It allowed the company to generate substantial free cash flow after a period of cash consumption, improving short-term liquidity flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue this quarter was lower than the prior quarter and also slightly below the year-ago level. Operating cash flow moved from a deep deficit in the prior quarter to a healthy surplus, while capital expenditure increased moderately relative to both periods. The combined effect produced a very strong free cash flow margin that mirrored the year-ago margin.
Compared with the immediately preceding quarter, cash generation improved dramatically—operating cash flow and free cash flow reversed from negative to positive, and the margin rose sharply. Relative to the same quarter one year earlier, revenue, operating cash flow and free cash flow were all slightly lower, but the margin held stable.
Monitor whether operating cash flow can sustain its positive trajectory given the volatility observed between quarters.
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 | $55 | Used as the denominator for FCF yield. |
| TTM FCF yield | 3883636363.6% | 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.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |