Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow was insufficient to cover capital expenditure, resulting in negative free cash flow. Revenue was higher than the prior quarter but lower than the same quarter last year.
- Operating cash flow was lower than capital expenditure, producing a negative free cash flow margin. This indicates cash conversion weakened compared to both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, revenue improved but operating cash flow and free cash flow were lower, and capital expenditure was higher. Versus the same quarter last year, revenue was slightly lower, operating cash flow was lower, and free cash flow turned from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$273.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$1.6B
Capital spending and related asset purchases.
FCF margin
-4.9%
The share of revenue converted into free cash flow.
TTM FCF yield
6.3%
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 | $6.3B | $3.0B | $2.2B | $736.0M | 11.6% |
| 2025-09-30 | $6.7B | $2.8B | $1.8B | $1.0B | 15.3% |
| 2025-12-31 | $1.7B | $2.6B | $753.0M | $1.9B | 113.4% |
| 2026-03-31 | $5.6B | $1.3B | $1.6B | -$273.0M | -4.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -8.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 27.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital expenditure outpacing operating cash flow
Capital expenditure was higher than operating cash flow, which was the primary factor behind the negative free cash flow. This relationship was reversed in both the prior quarter and the year-ago quarter.
If this pattern persists, free cash flow may remain negative unless operating cash flow increases or capital expenditure decreases.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than capital expenditure, producing a negative free cash flow margin. This indicates cash conversion weakened compared to both the prior quarter and the year-ago quarter.
Compared to the prior quarter, revenue improved but operating cash flow and free cash flow were lower, and capital expenditure was higher. Versus the same quarter last year, revenue was slightly lower, operating cash flow was lower, and free cash flow turned from positive to negative.
Monitor whether operating cash flow can cover capital expenditure in future periods.
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 | $53.5B | Used as the denominator for FCF yield. |
| TTM FCF yield | 6.3% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 19.1x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.