Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
NRG Energy's revenue rose compared to both the prior quarter and the same quarter last year. However, operating cash flow turned negative, leading to a significant decline in free cash flow and a negative free cash flow margin, in contrast to a positive margin a year ago.
- Revenue increased, but the conversion to cash weakened sharply as operating cash flow moved from positive to negative. Higher capital expenditure further pressured free cash flow, resulting in a negative free cash flow margin.
- Compared to the prior quarter, revenue improved but free cash flow worsened and the margin became more negative. Versus the same quarter last year, both operating cash flow and free cash flow were lower, while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$358.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$486.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$169.0M
Cash generated by operations before capital spending.
CapEx
$317.0M
Capital spending and related asset purchases.
FCF margin
-4.8%
The share of revenue converted into free cash flow.
TTM FCF yield
-1.2%
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 | $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% |
| 2026-03-31 | $10.1B | -$169.0M | $317.0M | -$486.0M | -4.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -388.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$23.0B | 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 Turned Negative
The most observable driver of the quarter's cash flow performance was the shift in operating cash flow from positive in the prior quarter and year-ago quarter to negative. This change, together with higher capital spending, erased free cash flow.
If operating cash flow remains negative, the company's ability to fund operations and investments without external financing could be constrained.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, but the conversion to cash weakened sharply as operating cash flow moved from positive to negative. Higher capital expenditure further pressured free cash flow, resulting in a negative free cash flow margin.
Compared to the prior quarter, revenue improved but free cash flow worsened and the margin became more negative. Versus the same quarter last year, both operating cash flow and free cash flow were lower, while capital expenditure was higher.
Monitor whether operating cash flow can return to positive levels in the coming quarters, as its current negative position is a key driver of cash flow weakness.
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 | $29.1B | Used as the denominator for FCF yield. |
| TTM FCF yield | -1.2% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | -145.6x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.