Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased from the prior quarter and from the same quarter last year. Capital expenditure was lower than the prior quarter but higher than a year ago, resulting in an improved free cash flow sequentially but a weakened free cash flow compared to the year-ago period. The company's filing discusses environmental regulatory developments and risk factors.
- The company generated higher revenue and operating cash flow compared to the prior quarter and the year-ago quarter. Capital expenditure remained substantial relative to operating cash flow, leading to negative free cash flow and a negative free cash flow margin.
- Sequentially, free cash flow improved from the prior quarter as capital expenditure decreased and operating cash flow increased. Year over year, free cash flow weakened because capital expenditure rose more than operating cash flow did.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$501.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$557.0M
Cash generated by operations before capital spending.
CapEx
$1.1B
Capital spending and related asset purchases.
FCF margin
-18.0%
The share of revenue converted into free cash flow.
TTM FCF yield
-6.0%
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 | $557.0M | Cash generated by operations before capital spending. |
| Capital expenditures | $1.1B | Capital spending used to bridge CFO to FCF. |
| Free cash flow | -$501.0M | 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 |
|---|---|---|---|---|---|
| 2025-06-30 | $2.0B | $602.0M | $930.0M | -$328.0M | -16.1% |
| 2025-09-30 | $2.2B | $966.0M | $1.1B | -$179.0M | -8.0% |
| 2025-12-31 | $2.3B | $548.0M | $1.2B | -$614.0M | -26.2% |
| 2026-03-31 | $2.8B | $557.0M | $1.1B | -$501.0M | -18.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -110.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 38.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$18.8B | 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 Level
Capital expenditure decreased from the prior quarter, which was the primary factor behind the sequential improvement in free cash flow. However, capital expenditure was higher than a year ago, contributing to the year-over-year decline in free cash flow.
The level of capital spending will continue to influence free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company generated higher revenue and operating cash flow compared to the prior quarter and the year-ago quarter. Capital expenditure remained substantial relative to operating cash flow, leading to negative free cash flow and a negative free cash flow margin.
Sequentially, free cash flow improved from the prior quarter as capital expenditure decreased and operating cash flow increased. Year over year, free cash flow weakened because capital expenditure rose more than operating cash flow did.
Monitor the trajectory of capital expenditure, as it remains a significant outflow relative to operating 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 | $26.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | -6.0% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | -28.1x | 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. |