Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the quarter ended December 31, 2025, free cash flow turned negative 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 a year earlier.
- Revenue increased slightly from the prior quarter and was higher than a year ago, but operating cash flow declined substantially, resulting in a negative free cash flow after capital expenditure. The free cash flow margin turned negative, indicating a weakened cash conversion efficiency.
- Compared to the prior quarter, operating cash flow and free cash flow both decreased, and capital expenditure increased. Versus the same quarter last year, operating cash flow and free cash flow were substantially lower, while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$766.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$175.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$123.0M
Cash generated by operations before capital spending.
CapEx
$298.0M
Capital spending and related asset purchases.
FCF margin
-2.3%
The share of revenue converted into free cash flow.
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 |
|---|---|---|---|---|---|
| 2025-03-31 | $8.5B | $855.0M | $217.0M | $638.0M | 7.5% |
| 2025-06-30 | $6.7B | $451.0M | $378.0M | $73.0M | 1.1% |
| 2025-09-30 | $7.5B | $484.0M | $254.0M | $230.0M | 3.1% |
| 2025-12-31 | $7.7B | $123.0M | $298.0M | -$175.0M | -2.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -265.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.9B | 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 Decline
Operating cash flow dropped sharply from both the prior quarter and the year-ago quarter, despite higher revenue. This decline was the strongest observable driver of the negative free cash flow.
The reduction in operating cash flow outweighed the increase in revenue and the rise in capital expenditure, leading to a negative free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased slightly from the prior quarter and was higher than a year ago, but operating cash flow declined substantially, resulting in a negative free cash flow after capital expenditure. The free cash flow margin turned negative, indicating a weakened cash conversion efficiency.
Compared to the prior quarter, operating cash flow and free cash flow both decreased, and capital expenditure increased. Versus the same quarter last year, operating cash flow and free cash flow were substantially lower, while capital expenditure was higher.
Monitor the trajectory of operating cash flow, as its decline was the primary factor behind the negative free cash flow this quarter.