Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained deeply negative as operating cash outflows widened more than revenue growth. The cash conversion rate deteriorated compared to both the prior quarter and the same quarter last year.
- Revenue rose while operating cash flow fell further into negative territory, pushing free cash flow margin lower. Capital expenditure was slightly lower than the prior quarter but still contributed to a large free cash outflow.
- Compared to the prior quarter, revenue improved but free cash flow was roughly stable as a larger operating cash outflow offset lower capital expenditure. Versus the same quarter a year ago, revenue was higher while free cash flow weakened significantly, driven by a much larger operating cash outflow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$703.0M
Cash generated by operations before capital spending.
CapEx
$372.0M
Capital spending and related asset purchases.
FCF margin
-77.8%
The share of revenue converted into free cash flow.
TTM FCF yield
n/a
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 | $1.3B | $64.0M | $462.0M | -$398.0M | -30.5% |
| 2025-09-30 | $1.6B | $26.0M | $447.0M | -$421.0M | -27.0% |
| 2025-12-31 | $1.3B | -$681.0M | $463.0M | -$1.1B | -89.0% |
| 2026-03-31 | $1.4B | -$703.0M | $372.0M | -$1.1B | -77.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 258.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 26.9% | 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.
Operating cash outflow expansion
The strongest observable driver of the period's free cash flow was the larger operating cash outflow compared to both the prior quarter and the year-ago quarter. Revenue increased, but the cash generated from operations worsened.
This operating cash outflow drove free cash flow to a negative margin that was much lower than the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow fell further into negative territory, pushing free cash flow margin lower. Capital expenditure was slightly lower than the prior quarter but still contributed to a large free cash outflow.
Compared to the prior quarter, revenue improved but free cash flow was roughly stable as a larger operating cash outflow offset lower capital expenditure. Versus the same quarter a year ago, revenue was higher while free cash flow weakened significantly, driven by a much larger operating cash outflow.
Monitor whether the widening operating cash outflow narrows in upcoming quarters, as it is the primary drain on free 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 | n/a | Used as the denominator for FCF yield. |
| TTM FCF yield | n/a | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |