Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the prior quarter and was higher than the same quarter last year. Operating cash flow and free cash flow turned deeply negative, resulting in a significantly weakened free cash flow margin.
- Despite revenue, operating cash flow was a large negative outflow, far exceeding capital expenditure, which was modest. This produced a deeply negative free cash flow and a sharply negative free cash flow margin.
- Compared to the prior quarter, revenue was lower, while operating cash flow and free cash flow shifted from near break-even to large negative outflows, and the margin weakened substantially. Versus the same quarter last year, revenue was higher, but operating cash flow and free cash flow reversed from positive to deeply negative, and the margin turned from positive to negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$6.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$6.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$6.6B
Cash generated by operations before capital spending.
CapEx
$80.3M
Capital spending and related asset purchases.
FCF margin
-65.4%
The share of revenue converted into free cash flow.
TTM FCF yield
-42.4%
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 | $5.8B | $863.6M | $22.7M | $840.9M | 14.6% |
| 2025-09-30 | $5.0B | -$917.5M | $32.3M | -$949.8M | -18.9% |
| 2025-12-31 | $12.7B | -$23.9M | $21.2M | -$45.1M | -0.4% |
| 2026-03-31 | $10.2B | -$6.6B | $80.3M | -$6.7B | -65.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1385.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | 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 Flow Swing
Operating cash flow moved from a small negative in the prior quarter and a positive in the year-ago quarter to a very large negative. This is the strongest observable driver of the free cash flow decline.
The large operating cash outflow overwhelmed the modest capital expenditure, causing free cash flow to be deeply negative.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite revenue, operating cash flow was a large negative outflow, far exceeding capital expenditure, which was modest. This produced a deeply negative free cash flow and a sharply negative free cash flow margin.
Compared to the prior quarter, revenue was lower, while operating cash flow and free cash flow shifted from near break-even to large negative outflows, and the margin weakened substantially. Versus the same quarter last year, revenue was higher, but operating cash flow and free cash flow reversed from positive to deeply negative, and the margin turned from positive to negative.
Monitor the magnitude of operating cash outflow relative to revenue in the next 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 | $16.2B | Used as the denominator for FCF yield. |
| TTM FCF yield | -42.4% | 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.