Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative in the current quarter, driven by a large operating cash outflow. Revenue was slightly higher than the same quarter last year but lower than the prior quarter.
- Operating cash flow was negative, resulting in negative free cash flow and a negative free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, operating cash flow and free cash flow weakened sharply, turning from positive to negative. Compared to the same quarter last year, operating cash flow and free cash flow were slightly improved, though still negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.8B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$1.7B
Cash generated by operations before capital spending.
CapEx
$167.0M
Capital spending and related asset purchases.
FCF margin
-18.4%
The share of revenue converted into free cash flow.
TTM FCF yield
4.4%
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 | $10.4B | $868.0M | $231.0M | $637.0M | 6.2% |
| 2025-09-30 | $10.4B | $1.6B | $301.0M | $1.3B | 12.1% |
| 2025-12-31 | $11.7B | $3.9B | $662.0M | $3.2B | 27.6% |
| 2026-03-31 | $9.9B | -$1.7B | $167.0M | -$1.8B | -18.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -208.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.1B | 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
Operating cash flow was the strongest observable driver, as its negative value directly caused the negative free cash flow. Revenue was stable relative to the year-ago quarter, but the cash conversion was significantly negative.
The large operating cash outflow overwhelmed the lower capital expenditure, resulting in a free cash flow deficit.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was negative, resulting in negative free cash flow and a negative free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter.
Compared to the prior quarter, operating cash flow and free cash flow weakened sharply, turning from positive to negative. Compared to the same quarter last year, operating cash flow and free cash flow were slightly improved, though still negative.
Monitor whether operating cash flow turns positive in the coming quarter, as it is the primary driver of 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 | $75.0B | Used as the denominator for FCF yield. |
| TTM FCF yield | 4.4% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 26.6x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.