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 prior quarter and the same quarter last year, but operating cash flow turned sharply negative, resulting in a deeply negative free cash flow and margin. The swing in operating cash flow is the dominant factor in the quarter's cash conversion.
- Revenue was higher than both the preceding quarter and the year-ago quarter, yet operating cash flow was negative, leading to negative free cash flow and a negative free cash flow margin. Capital expenditure was slightly higher than the prior quarter and the year-ago period.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow weakened from positive to negative, while revenue improved. Versus the same quarter one year earlier, operating cash flow and free cash flow also turned from positive to negative, despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$12.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$12.1B
Cash generated by operations before capital spending.
CapEx
$270.0M
Capital spending and related asset purchases.
FCF margin
-327.0%
The share of revenue converted into free cash flow.
TTM FCF yield
-7.2%
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 | $3.4B | -$8.4B | $319.0M | -$8.8B | -254.1% |
| 2025-09-30 | $3.5B | $7.9B | $243.0M | $7.7B | 216.0% |
| 2025-12-31 | $3.7B | $10.0B | $267.0M | $9.8B | 266.6% |
| 2026-03-31 | $3.8B | -$12.1B | $270.0M | -$12.4B | -327.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -1624.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.1% | 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.
Operating cash flow swing
Operating cash flow moved from a large positive amount in the prior quarter and a positive amount a year ago to a large negative figure in the current quarter, while revenue continued to grow. This shift is the most prominent observable change in the financial metrics.
The negative operating cash flow directly caused free cash flow to be deeply negative, reversing the positive free cash flow seen in both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the preceding quarter and the year-ago quarter, yet operating cash flow was negative, leading to negative free cash flow and a negative free cash flow margin. Capital expenditure was slightly higher than the prior quarter and the year-ago period.
Compared to the immediately preceding quarter, operating cash flow and free cash flow weakened from positive to negative, while revenue improved. Versus the same quarter one year earlier, operating cash flow and free cash flow also turned from positive to negative, despite higher revenue.
Monitor the trajectory of operating cash flow in upcoming quarters to assess whether the negative swing is temporary or persistent.
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 | $51.6B | Used as the denominator for FCF yield. |
| TTM FCF yield | -7.2% | 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.