Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative this quarter as operating cash flow fell sharply while capital expenditure rose. The free cash flow margin weakened significantly compared to both the prior quarter and the same quarter last year.
- Revenue was slightly higher than the prior quarter, but operating cash flow was much lower, resulting in a negative free cash flow after capital expenditure. The free cash flow margin dropped from positive levels in both comparison periods to a negative figure.
- Compared to the prior quarter, operating cash flow and free cash flow were both lower, and capital expenditure was higher. Versus the same quarter last year, operating cash flow and free cash flow were also lower, while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$132.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$72.0M
Cash generated by operations before capital spending.
CapEx
$204.0M
Capital spending and related asset purchases.
FCF margin
-15.4%
The share of revenue converted into free cash flow.
TTM FCF yield
8.3%
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 | $769.0M | $1.0B | $134.0M | $872.0M | 113.4% |
| 2025-09-30 | $732.0M | $920.0M | $156.0M | $764.0M | 104.4% |
| 2025-12-31 | $827.0M | $617.0M | $191.0M | $426.0M | 51.5% |
| 2026-03-31 | $858.0M | $72.0M | $204.0M | -$132.0M | -15.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -39.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 23.8% | 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
Operating cash flow was substantially lower than both the prior quarter and the year-ago quarter, despite revenue being relatively stable. This was the primary factor behind the negative free cash flow.
The sharp drop in operating cash flow drove free cash flow from positive to negative this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter, but operating cash flow was much lower, resulting in a negative free cash flow after capital expenditure. The free cash flow margin dropped from positive levels in both comparison periods to a negative figure.
Compared to the prior quarter, operating cash flow and free cash flow were both lower, and capital expenditure was higher. Versus the same quarter last year, operating cash flow and free cash flow were also lower, while capital expenditure was higher.
Monitor whether operating cash flow recovers toward historical levels in the coming 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 | $23.2B | Used as the denominator for FCF yield. |
| TTM FCF yield | 8.3% | 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.