Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the fiscal first quarter, free cash flow turned negative as operating cash flow declined sharply while revenue remained stable. This led to a negative free cash flow margin, a significant weakening from both the prior quarter and the same quarter last year.
- Revenue was unchanged period over period, but operating cash flow decreased substantially, resulting in free cash flow turning negative after capital expenditure. The cash conversion from revenue to operating cash flow weakened, and capital expenditure, though lower than the prior quarter, was still higher than operating cash flow, producing a negative free cash flow.
- Compared to the immediately preceding quarter, operating cash flow was substantially lower and free cash flow dropped from positive to negative, a marked deterioration. Versus the same quarter one year earlier, both operating cash flow and free cash flow were also significantly lower, with the free cash flow margin declining from positive territory to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$38.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$344.0M
Cash generated by operations before capital spending.
CapEx
$382.0M
Capital spending and related asset purchases.
FCF margin
-1.3%
The share of revenue converted into free cash flow.
TTM FCF yield
2.2%
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 | $3.1B | $1.1B | $475.0M | $602.0M | 19.4% |
| 2025-09-30 | $3.1B | $1.3B | $551.0M | $720.0M | 23.2% |
| 2025-12-31 | $3.0B | $1.1B | $729.0M | $334.0M | 11.2% |
| 2026-03-31 | $3.0B | $344.0M | $382.0M | -$38.0M | -1.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -6.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.7% | 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 decreased significantly compared to both the prior quarter and the same quarter last year, despite unchanged revenue. This was the strongest observable driver of the negative free cash flow in the current quarter.
The decline in operating cash flow, even with lower capital expenditure, was enough to push free cash flow negative, signaling weakened cash generation from core operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged period over period, but operating cash flow decreased substantially, resulting in free cash flow turning negative after capital expenditure. The cash conversion from revenue to operating cash flow weakened, and capital expenditure, though lower than the prior quarter, was still higher than operating cash flow, producing a negative free cash flow.
Compared to the immediately preceding quarter, operating cash flow was substantially lower and free cash flow dropped from positive to negative, a marked deterioration. Versus the same quarter one year earlier, both operating cash flow and free cash flow were also significantly lower, with the free cash flow margin declining from positive territory to negative.
Monitor whether operating cash flow can recover in upcoming quarters, as it is the primary determinant of free cash flow generation.
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 | $73.4B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.2% | 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.