Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter but lower than the same quarter a year earlier. Operating cash flow weakened significantly, resulting in negative free cash flow as capital expenditure remained elevated.
- Operating cash flow declined while capital expenditure was slightly lower than the prior quarter, causing free cash flow to turn negative. The free cash flow margin weakened from positive in both prior periods to negative.
- Compared to the prior quarter, operating cash flow was substantially lower, and free cash flow shifted from positive to negative. Versus the same quarter a year ago, revenue was lower, operating cash flow was lower, and capital expenditure was higher, resulting in a weaker free cash flow position.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$261.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$160.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$739.5M
Cash generated by operations before capital spending.
CapEx
$899.5M
Capital spending and related asset purchases.
FCF margin
-3.9%
The share of revenue converted into free cash flow.
TTM FCF yield
0.4%
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 | $4.3B | $858.3M | $906.1M | -$47.8M | -1.1% |
| 2025-09-30 | $4.2B | $599.2M | $671.8M | -$72.6M | -1.7% |
| 2025-12-31 | $4.1B | $1.5B | $963.2M | $542.3M | 13.4% |
| 2026-03-31 | $4.1B | $739.5M | $899.5M | -$160.0M | -3.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -33.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 22.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$19.0B | 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 decreased significantly both sequentially and year over year, while revenue was stable or lower. The filing indicates that the company's liquidity is supported by internal cash flows and access to debt and equity markets, with management considering these sufficient for near-term obligations.
The decline in operating cash flow turned free cash flow from positive to negative, despite a slight reduction in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow declined while capital expenditure was slightly lower than the prior quarter, causing free cash flow to turn negative. The free cash flow margin weakened from positive in both prior periods to negative.
Compared to the prior quarter, operating cash flow was substantially lower, and free cash flow shifted from positive to negative. Versus the same quarter a year ago, revenue was lower, operating cash flow was lower, and capital expenditure was higher, resulting in a weaker free cash flow position.
The level of capital expenditure relative to operating cash flow, as capex has remained high while cash generation has weakened.
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 | $59.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | 0.4% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 300.6x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.