Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter last year. Operating cash flow and free cash flow were negative, with a free cash flow margin that weakened compared to the prior quarter but was similar to the year-ago quarter.
- Despite higher revenue, operating cash flow was negative, resulting in negative free cash flow and a negative free cash flow margin. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter.
- Compared to the immediately preceding quarter, revenue improved while operating cash flow, free cash flow, and free cash flow margin all weakened. Versus the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were slightly more negative, and the free cash flow margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$750.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$688.0M
Cash generated by operations before capital spending.
CapEx
$62.0M
Capital spending and related asset purchases.
FCF margin
-9.9%
The share of revenue converted into free cash flow.
TTM FCF yield
5.8%
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 | -$688.0M | Cash generated by operations before capital spending. |
| Capital expenditures | $62.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | -$750.0M | 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 |
|---|---|---|---|---|---|
| 2022-09-30 | n/a | $1.4B | $128.0M | $1.3B | n/a |
| 2022-12-31 | n/a | $1.5B | $103.0M | $1.4B | n/a |
| 2023-03-31 | n/a | -$819.0M | $84.0M | -$903.0M | n/a |
| 2023-06-30 | $5.9B | $1.5B | $101.0M | $1.4B | 23.5% |
| 2023-09-30 | $5.4B | $1.8B | $111.0M | $1.7B | 31.6% |
| 2023-12-31 | $5.6B | $1.8B | $120.0M | $1.7B | 29.9% |
| 2024-03-31 | $6.5B | -$781.0M | $87.0M | -$868.0M | -13.4% |
| 2024-06-30 | $6.2B | $1.2B | $80.0M | $1.1B | 18.2% |
| 2024-09-30 | $5.7B | $1.9B | $73.0M | $1.8B | 32.3% |
| 2024-12-31 | $6.1B | $2.0B | $76.0M | $1.9B | 31.0% |
| 2025-03-31 | $7.1B | -$622.0M | $55.0M | -$677.0M | -9.6% |
| 2025-06-30 | $7.0B | $1.7B | $59.0M | $1.6B | 23.1% |
| 2025-09-30 | $6.4B | $2.1B | $72.0M | $2.0B | 31.6% |
| 2025-12-31 | $6.6B | $2.2B | $105.0M | $2.1B | 31.2% |
| 2026-03-31 | $7.6B | -$688.0M | $62.0M | -$750.0M | -9.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -65.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$17.9B | 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 Negative
Operating cash flow was negative this quarter, a decline from the positive level in the prior quarter and a slight worsening from the negative level in the year-ago quarter. This drove the negative free cash flow and free cash flow margin.
The negative operating cash flow was the strongest observable driver of the quarter's weak free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow was negative, resulting in negative free cash flow and a negative free cash flow margin. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter.
Compared to the immediately preceding quarter, revenue improved while operating cash flow, free cash flow, and free cash flow margin all weakened. Versus the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were slightly more negative, and the free cash flow margin was slightly lower.
Monitor the trajectory of operating cash flow, as it turned negative this quarter despite higher revenue.
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 | $85.0B | Used as the denominator for FCF yield. |
| TTM FCF yield | 5.8% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 20.9x | 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. |