Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow was negative as capital expenditure exceeded operating cash flow, despite revenue growth. The cash conversion weakened substantially from the prior quarter but improved from the year-ago period.
- Operating cash flow was insufficient to cover capital spending, resulting in a negative free cash flow margin. Revenue increased, but cash generation did not keep pace.
- Compared to the immediately preceding quarter, free cash flow turned from positive to negative, primarily due to lower operating cash flow. Compared to the same quarter one year earlier, free cash flow improved as operating cash flow turned positive and capital spending was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$548.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$33.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$63.9M
Cash generated by operations before capital spending.
CapEx
$97.6M
Capital spending and related asset purchases.
FCF margin
-0.5%
The share of revenue converted into free cash flow.
TTM FCF yield
3.3%
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 | $6.2B | $209.9M | $129.0M | $81.0M | 1.3% |
| 2025-09-30 | $6.3B | $341.6M | $101.6M | $240.0M | 3.8% |
| 2025-12-31 | $6.0B | $380.1M | $119.4M | $260.7M | 4.3% |
| 2026-03-31 | $6.3B | $63.9M | $97.6M | -$33.6M | -0.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -17.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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.
Operating cash flow decline
The current quarter's operating cash flow was significantly lower than the previous quarter, leading to negative free cash flow even with reduced capital spending.
If operating cash flow does not recover, free cash flow may remain negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was insufficient to cover capital spending, resulting in a negative free cash flow margin. Revenue increased, but cash generation did not keep pace.
Compared to the immediately preceding quarter, free cash flow turned from positive to negative, primarily due to lower operating cash flow. Compared to the same quarter one year earlier, free cash flow improved as operating cash flow turned positive and capital spending was lower.
Monitor the ability of operating cash flow to support capital expenditure and generate positive 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 | $16.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.3% | 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.