Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The cash conversion outcome turned negative in the current quarter, as operating cash flow shifted to a deficit and free cash flow margin became negative. Revenue remained stable compared to the previous quarter but was higher than the same quarter one year earlier.
- Operating cash flow was a net outflow, leading to negative free cash flow and a negative margin, a sharp reversal from the positive cash conversion in both the prior quarter and the year-ago period.
- Compared to the immediately preceding quarter, operating cash flow weakened from a surplus to a deficit, free cash flow turned negative, and margin dropped significantly, while revenue was essentially stable. Versus the same quarter one year earlier, operating cash flow and free cash flow were substantially lower, and revenue was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$329.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$320.0M
Cash generated by operations before capital spending.
CapEx
$9.4M
Capital spending and related asset purchases.
FCF margin
-24.6%
The share of revenue converted into free cash flow.
TTM FCF yield
6.8%
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 | $1.2B | $1.9B | $12.4M | $1.9B | 150.8% |
| 2025-09-30 | $1.3B | $525.8M | $16.4M | $509.4M | 40.3% |
| 2025-12-31 | $1.3B | $388.4M | $32.8M | $355.6M | 27.2% |
| 2026-03-31 | $1.3B | -$320.0M | $9.4M | -$329.4M | -24.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -62.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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 turned negative in the current quarter, reversing from positive amounts in both the prior quarter and the year-ago quarter. This was the most prominent observable factor behind the negative free cash flow.
The shift in operating cash flow was the strongest driver of the quarter's negative free cash flow and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was a net outflow, leading to negative free cash flow and a negative margin, a sharp reversal from the positive cash conversion in both the prior quarter and the year-ago period.
Compared to the immediately preceding quarter, operating cash flow weakened from a surplus to a deficit, free cash flow turned negative, and margin dropped significantly, while revenue was essentially stable. Versus the same quarter one year earlier, operating cash flow and free cash flow were substantially lower, and revenue was slightly higher.
Monitor operating cash flow, as its movement from positive to negative was the primary driver of the current quarter's negative 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 | $35.2B | Used as the denominator for FCF yield. |
| TTM FCF yield | 6.8% | 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.