Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow turned negative, resulting in a negative free cash flow margin.
- Revenue declined from the prior quarter, while operating cash flow shifted from positive to negative, and capital expenditure increased. This drove free cash flow deeply negative, with the free cash flow margin weakening substantially.
- Compared with the immediately preceding quarter, revenue was lower, operating cash flow was much lower, capital expenditure was higher, and free cash flow turned from positive to negative. Versus the same quarter one year earlier, revenue was higher, but operating cash flow was lower, capital expenditure was higher, and free cash flow was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$873.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$650.0M
Cash generated by operations before capital spending.
CapEx
$223.0M
Capital spending and related asset purchases.
FCF margin
-9.5%
The share of revenue converted into free cash flow.
TTM FCF yield
2.9%
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 | -$650.0M | Cash generated by operations before capital spending. |
| Capital expenditures | $223.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | -$873.0M | 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 | $9.0B | $789.0M | $158.0M | $631.0M | 7.0% |
| 2022-09-30 | $9.0B | $2.1B | $184.0M | $1.9B | 21.2% |
| 2022-12-31 | $9.2B | $2.4B | $241.0M | $2.1B | 23.1% |
| 2023-03-31 | $8.9B | -$784.0M | $193.0M | -$977.0M | -11.0% |
| 2023-06-30 | $9.1B | $1.4B | $233.0M | $1.1B | 12.3% |
| 2023-09-30 | $9.2B | $1.8B | $249.0M | $1.6B | 16.9% |
| 2023-12-31 | $5.8B | $3.0B | $66.0M | $2.9B | 49.9% |
| 2024-03-31 | $8.2B | $448.0M | $233.0M | $215.0M | 2.6% |
| 2024-06-30 | $10.5B | $1.4B | $259.0M | $1.1B | 10.6% |
| 2024-09-30 | $9.7B | $2.0B | $279.0M | $1.7B | 17.7% |
| 2024-12-31 | $9.2B | $2.3B | $100.0M | $2.2B | 23.8% |
| 2025-03-31 | $8.9B | $597.0M | $190.0M | $407.0M | 4.6% |
| 2025-06-30 | $11.2B | $1.3B | $364.0M | $955.0M | 8.5% |
| 2025-09-30 | $10.4B | $3.3B | $374.0M | $2.9B | 28.0% |
| 2025-12-31 | $9.8B | $1.2B | $58.0M | $1.1B | 11.7% |
| 2026-03-31 | $9.1B | -$650.0M | $223.0M | -$873.0M | -9.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -106.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$20.1B | 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 swing
Operating cash flow turned negative in the current quarter, a sharp reversal from positive levels in both the prior quarter and the year-ago quarter. This was the most significant observable change among the reported metrics.
The negative operating cash flow was the primary factor behind the free cash flow deficit, overwhelming the effect of higher capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined from the prior quarter, while operating cash flow shifted from positive to negative, and capital expenditure increased. This drove free cash flow deeply negative, with the free cash flow margin weakening substantially.
Compared with the immediately preceding quarter, revenue was lower, operating cash flow was much lower, capital expenditure was higher, and free cash flow turned from positive to negative. Versus the same quarter one year earlier, revenue was higher, but operating cash flow was lower, capital expenditure was higher, and free cash flow was lower.
Monitor the company's ability to restore positive operating cash flow, given its stated reliance on operating cash flows as the primary source of liquidity.
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 | $141.2B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.9% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 38.9x | 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. |