Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company reported negative free cash flow in the current quarter, driven by negative operating cash flow despite higher revenue. Capital expenditure was lower than both the prior quarter and the year-ago period.
- Revenue was higher than the prior quarter, but operating cash flow turned deeply negative, resulting in a negative free cash flow margin. Capital expenditure, while lower than both comparison periods, was not the primary cause of the cash shortfall.
- Compared to the immediately preceding quarter, all cash flow metrics weakened significantly, with operating cash flow and free cash flow moving from positive to negative. Versus the same quarter one year earlier, operating cash flow was slightly more negative, but free cash flow was broadly similar and the margin improved modestly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$752.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$399.0M
Cash generated by operations before capital spending.
CapEx
$353.0M
Capital spending and related asset purchases.
FCF margin
-7.4%
The share of revenue converted into free cash flow.
TTM FCF yield
3.8%
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 | $10.1B | $3.4B | $356.0M | $3.1B | 30.1% |
| 2025-09-30 | $10.8B | $4.5B | $365.0M | $4.1B | 37.8% |
| 2025-12-31 | $10.4B | $4.7B | $444.0M | $4.3B | 41.2% |
| 2026-03-31 | $10.1B | -$399.0M | $353.0M | -$752.0M | -7.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -30.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | 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.
Negative Operating Cash Flow
Operating cash flow was negative in the current quarter, despite higher revenue compared to both the prior quarter and the year-ago period. This negative cash flow was the primary driver of the negative free cash flow.
The company's operations did not generate sufficient cash to cover capital expenditures, resulting in a reliance on external financing or cash reserves.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, but operating cash flow turned deeply negative, resulting in a negative free cash flow margin. Capital expenditure, while lower than both comparison periods, was not the primary cause of the cash shortfall.
Compared to the immediately preceding quarter, all cash flow metrics weakened significantly, with operating cash flow and free cash flow moving from positive to negative. Versus the same quarter one year earlier, operating cash flow was slightly more negative, but free cash flow was broadly similar and the margin improved modestly.
Monitor the trajectory of operating cash flow, as it remains the key 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 | $281.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.8% | 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.