Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter, while free cash flow remained negative but improved compared to the year-ago period.
- Free cash flow turned negative as capital expenditure exceeded operating cash flow, resulting in a negative free cash flow margin. The ratio of operating cash flow to revenue was lower than the prior quarter but higher than the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow was lower, leading to a weaker free cash flow margin. Versus the same quarter last year, revenue and operating cash flow were both higher, and capital expenditure was lower, resulting in an improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$633.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$179.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$338.6M
Cash generated by operations before capital spending.
CapEx
$518.0M
Capital spending and related asset purchases.
FCF margin
-9.3%
The share of revenue converted into free cash flow.
TTM FCF yield
-1.8%
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 | $338.6M | Cash generated by operations before capital spending. |
| Capital expenditures | $518.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | -$179.5M | 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 | $1.3B | $291.4M | $169.2M | $122.2M | 9.5% |
| 2022-09-30 | $1.3B | $214.4M | $266.6M | -$52.1M | -4.1% |
| 2022-12-31 | $1.3B | $367.3M | $278.6M | $88.8M | 6.9% |
| 2023-03-31 | $1.3B | $128.8M | $265.9M | -$137.1M | -10.4% |
| 2023-06-30 | $1.4B | $317.3M | $334.9M | -$17.6M | -1.3% |
| 2023-09-30 | $1.4B | $220.3M | $361.5M | -$141.3M | -10.2% |
| 2023-12-31 | $1.4B | $447.2M | $376.9M | $70.3M | 4.9% |
| 2024-03-31 | $1.5B | $130.0M | $381.1M | -$251.1M | -17.0% |
| 2024-06-30 | $1.5B | $382.2M | $396.8M | -$14.6M | -1.0% |
| 2024-09-30 | $1.6B | $252.9M | $396.1M | -$143.2M | -9.2% |
| 2024-12-31 | $1.6B | $431.6M | $617.6M | -$186.0M | -11.8% |
| 2025-03-31 | $1.6B | $197.3M | $674.8M | -$477.5M | -30.0% |
| 2025-06-30 | $1.7B | $375.1M | $556.8M | -$181.6M | -10.6% |
| 2025-09-30 | $1.8B | $267.6M | $523.9M | -$256.3M | -14.6% |
| 2025-12-31 | $1.8B | $500.0M | $516.2M | -$16.2M | -0.9% |
| 2026-03-31 | $1.9B | $338.6M | $518.0M | -$179.5M | -9.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -120.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 26.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-Year Cash Flow Improvement
The increase in operating cash flow compared to the year-ago quarter, supported by higher net income as noted in the filing, combined with a reduction in capital expenditure, drove a notable improvement in free cash flow.
This improvement indicates a stronger cash conversion relative to the prior year, although the company still reported negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow turned negative as capital expenditure exceeded operating cash flow, resulting in a negative free cash flow margin. The ratio of operating cash flow to revenue was lower than the prior quarter but higher than the year-ago quarter.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow was lower, leading to a weaker free cash flow margin. Versus the same quarter last year, revenue and operating cash flow were both higher, and capital expenditure was lower, resulting in an improved free cash flow margin.
Monitor the trend in capital expenditure relative to operating cash flow, as it continues to outpace cash from operations and sustains 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 | $35.6B | Used as the denominator for FCF yield. |
| TTM FCF yield | -1.8% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | -82.9x | 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. |