Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was negative in the current quarter, as operating cash flow fell short of capital expenditure. Revenue remained relatively stable compared to the same quarter last year and was slightly higher than the preceding quarter.
- Revenue was stable, but operating cash flow declined sharply, resulting in a negative free cash flow margin. Capital expenditure was higher compared to both the prior quarter and the year-ago period.
- Compared to the immediately preceding quarter, operating cash flow was significantly lower, turning free cash flow from positive to negative. Versus the same quarter one year earlier, free cash flow was more negative, with a higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$420.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$204.0M
Cash generated by operations before capital spending.
CapEx
$624.0M
Capital spending and related asset purchases.
FCF margin
-5.4%
The share of revenue converted into free cash flow.
TTM FCF yield
4.5%
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 | $7.9B | $829.0M | $522.0M | $307.0M | 3.9% |
| 2025-09-30 | $8.0B | $1.1B | $610.0M | $523.0M | 6.5% |
| 2025-12-31 | $7.6B | $1.2B | $583.0M | $612.0M | 8.1% |
| 2026-03-31 | $7.7B | $204.0M | $624.0M | -$420.0M | -5.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -646.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.1% | 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 Decline
Operating cash flow fell substantially from the prior quarter and was also lower than the year-ago quarter, despite similar revenue levels. The filing attributes this primarily to a decrease in net income adjusted for non-cash items.
This decline drove the negative free cash flow and a weakened margin compared to both the prior quarter and the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, but operating cash flow declined sharply, resulting in a negative free cash flow margin. Capital expenditure was higher compared to both the prior quarter and the year-ago period.
Compared to the immediately preceding quarter, operating cash flow was significantly lower, turning free cash flow from positive to negative. Versus the same quarter one year earlier, free cash flow was more negative, with a higher capital expenditure.
Monitor the impact of accelerated depreciation and restructuring costs on operating cash flow, as noted in the filing.
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 | $22.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | 4.5% | 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.