Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved versus the prior quarter, but capital expenditure rose, resulting in a smaller free cash flow deficit. Compared with the same quarter last year, operating cash flow declined and capital expenditure increased, turning a positive free cash flow into a negative one.
- Revenue was slightly higher than the prior quarter and notably higher than a year ago. Operating cash flow as a share of revenue weakened versus the year-ago quarter, and the free cash flow margin turned negative from positive, reflecting the larger capital expenditure relative to operating cash flow.
- Compared with the immediately preceding quarter, operating cash flow was higher and capital expenditure was higher, leading to an improved free cash flow. Versus the same quarter one year earlier, operating cash flow was lower and capital expenditure was higher, causing free cash flow to weaken from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$4.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$926.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$3.4B
Capital spending and related asset purchases.
FCF margin
-13.5%
The share of revenue converted into free cash flow.
TTM FCF yield
-9.0%
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | $2.4B | Cash generated by operations before capital spending. |
| Capital expenditures | $3.4B | Capital spending used to bridge CFO to FCF. |
| Free cash flow | -$926.0M | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $5.1B | -$22.0M | $2.2B | -$2.3B | -44.0% |
| 2022-09-30 | $5.4B | $1.1B | $2.9B | -$1.8B | -33.4% |
| 2022-12-31 | $5.4B | $1.0B | $2.2B | -$1.2B | -21.7% |
| 2023-03-31 | $6.2B | $1.2B | $2.3B | -$1.1B | -17.8% |
| 2023-06-30 | $5.3B | $1.3B | $2.4B | -$1.1B | -21.1% |
| 2023-09-30 | $5.9B | $1.8B | $2.4B | -$611.0M | -10.4% |
| 2023-12-31 | $7.0B | $477.0M | $2.6B | -$2.1B | -30.3% |
| 2024-03-31 | $5.9B | $2.3B | $2.6B | -$377.0M | -6.4% |
| 2024-06-30 | $6.0B | $711.0M | $2.3B | -$1.6B | -26.5% |
| 2024-09-30 | $5.9B | $3.1B | $2.6B | $526.0M | 8.9% |
| 2024-12-31 | $6.6B | $1.9B | $2.8B | -$896.0M | -13.5% |
| 2025-03-31 | $6.0B | $2.8B | $2.6B | $213.0M | 3.6% |
| 2025-06-30 | $5.9B | $1.1B | $3.1B | -$2.0B | -34.0% |
| 2025-09-30 | $6.3B | $2.9B | $2.9B | -$80.0M | -1.3% |
| 2025-12-31 | $6.8B | $2.0B | $3.2B | -$1.2B | -17.6% |
| 2026-03-31 | $6.9B | $2.4B | $3.4B | -$926.0M | -13.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -104.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 48.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$59.6B | 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 Growth
Capital expenditure increased compared with both the prior quarter and the year-ago quarter, while operating cash flow did not keep pace. This was the strongest observable driver of the negative free cash flow.
The higher capital expenditure was the primary factor turning free cash flow negative versus the year-ago quarter and limiting improvement from the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter and notably higher than a year ago. Operating cash flow as a share of revenue weakened versus the year-ago quarter, and the free cash flow margin turned negative from positive, reflecting the larger capital expenditure relative to operating cash flow.
Compared with the immediately preceding quarter, operating cash flow was higher and capital expenditure was higher, leading to an improved free cash flow. Versus the same quarter one year earlier, operating cash flow was lower and capital expenditure was higher, causing free cash flow to weaken from positive to negative.
Monitor the trend in capital expenditure relative to operating cash flow, as the gap widened compared with both the prior quarter and the year-ago quarter.
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 | $46.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | -9.0% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | -25.3x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |