Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the preceding quarter and the same quarter last year. However, free cash flow remained negative, and the margin weakened versus the prior year.
- Operating cash flow was lower than capital expenditure, resulting in negative free cash flow. The free cash flow margin was negative, reflecting the gap between cash generation and investment spending.
- Compared to the immediately preceding quarter, revenue was higher and capital expenditure was lower, which improved the free cash flow margin despite lower operating cash flow. Compared to the same quarter one year earlier, revenue was higher but capital expenditure increased, leading to a more negative free cash flow and a weaker margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$3.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$2.9B
Capital spending and related asset purchases.
FCF margin
-20.5%
The share of revenue converted into free cash flow.
TTM FCF yield
-3.3%
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 | $7.0B | $2.2B | $2.8B | -$619.0M | -8.9% |
| 2025-09-30 | $7.8B | $3.8B | $3.2B | $559.0M | 7.1% |
| 2025-12-31 | $7.0B | $2.6B | $4.3B | -$1.7B | -24.2% |
| 2026-03-31 | $8.4B | $1.2B | $2.9B | -$1.7B | -20.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -126.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 35.1% | 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.
Capital Expenditure Increase
Capital expenditure rose compared to the same quarter one year earlier, while operating cash flow remained at a similar level. This shift widened the shortfall in free cash flow.
The higher investment spending acted as a primary drag on free cash flow generation for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than capital expenditure, resulting in negative free cash flow. The free cash flow margin was negative, reflecting the gap between cash generation and investment spending.
Compared to the immediately preceding quarter, revenue was higher and capital expenditure was lower, which improved the free cash flow margin despite lower operating cash flow. Compared to the same quarter one year earlier, revenue was higher but capital expenditure increased, leading to a more negative free cash flow and a weaker margin.
Monitor the trend of operating cash flow relative to capital expenditure, as the gap continued to produce negative 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 | $106.6B | Used as the denominator for FCF yield. |
| TTM FCF yield | -3.3% | 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.