Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned negative from a positive prior quarter but improved from a deeply negative year-ago level. Operating cash flow was much lower than the prior quarter yet positive and better than the year-ago quarter.
- Revenue was stable versus the prior quarter and higher than a year ago. Operating cash flow was lower than the prior quarter but positive versus negative a year ago. Capital expenditure was lower than both comparison periods. The combination produced a free cash flow margin that weakened from the prior quarter but improved from a year ago.
- Compared to the prior quarter, operating cash flow declined sharply and free cash flow turned negative. Versus the year-ago quarter, operating cash flow improved from negative to positive, and free cash flow, though still negative, improved notably.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$163.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$33.0M
Cash generated by operations before capital spending.
CapEx
$196.0M
Capital spending and related asset purchases.
FCF margin
-4.1%
The share of revenue converted into free cash flow.
TTM FCF yield
4.8%
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 | $33.0M | Cash generated by operations before capital spending. |
| Capital expenditures | $196.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | -$163.0M | 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 | $4.7B | $168.0M | $70.0M | $98.0M | 2.1% |
| 2022-09-30 | $4.5B | $512.0M | $104.0M | $408.0M | 9.1% |
| 2022-12-31 | $2.1B | $587.0M | $118.0M | $469.0M | 21.8% |
| 2023-03-31 | $4.4B | $85.0M | $120.0M | -$35.0M | -0.8% |
| 2023-06-30 | $4.9B | $536.0M | $122.0M | $414.0M | 8.5% |
| 2023-09-30 | $4.6B | $892.0M | $139.0M | $753.0M | 16.2% |
| 2023-12-31 | $2.3B | $898.0M | $135.0M | $763.0M | 32.5% |
| 2024-03-31 | $3.8B | -$60.0M | $252.0M | -$312.0M | -8.1% |
| 2024-06-30 | $4.2B | $365.0M | $115.0M | $250.0M | 5.9% |
| 2024-09-30 | $4.0B | $769.0M | $146.0M | $623.0M | 15.5% |
| 2024-12-31 | $3.7B | $346.0M | $208.0M | $138.0M | 3.7% |
| 2025-03-31 | $3.7B | -$18.0M | $209.0M | -$227.0M | -6.2% |
| 2025-06-30 | $4.2B | $387.0M | $121.0M | $266.0M | 6.3% |
| 2025-09-30 | $4.1B | $685.0M | $147.0M | $538.0M | 13.2% |
| 2025-12-31 | $3.9B | $887.0M | $301.0M | $586.0M | 15.0% |
| 2026-03-31 | $3.9B | $33.0M | $196.0M | -$163.0M | -4.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -42.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.5B | 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 and capital expenditure gap
Operating cash flow was positive but significantly lower than the prior quarter, while capital expenditure, though reduced, still exceeded operating cash flow, driving free cash flow negative.
Free cash flow turned negative because current-quarter operating cash flow was insufficient to cover capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior quarter and higher than a year ago. Operating cash flow was lower than the prior quarter but positive versus negative a year ago. Capital expenditure was lower than both comparison periods. The combination produced a free cash flow margin that weakened from the prior quarter but improved from a year ago.
Compared to the prior quarter, operating cash flow declined sharply and free cash flow turned negative. Versus the year-ago quarter, operating cash flow improved from negative to positive, and free cash flow, though still negative, improved notably.
Monitor the level of operating cash flow relative to capital expenditure, as capital expenditure exceeded operating cash flow in the current 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 | $25.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | 4.8% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 25.4x | 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. |