Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow was negative, driven by a negative operating cash flow. Revenue decreased compared to the prior quarter and was slightly lower than the same quarter last year.
- Cash conversion turned negative this quarter, as operating cash flow was insufficient to cover capital expenditure, resulting in a negative free cash flow margin. This contrasts with the positive margins in both the prior quarter and the same quarter last year.
- Compared to the prior quarter, operating cash flow and free cash flow weakened significantly, while capital expenditure was lower. Relative to the same quarter last year, operating cash flow and free cash flow also declined, with capital expenditure remaining at a similar level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$476.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$208.0M
Cash generated by operations before capital spending.
CapEx
$268.0M
Capital spending and related asset purchases.
FCF margin
-5.4%
The share of revenue converted into free cash flow.
TTM FCF yield
3.4%
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 | $9.8B | $983.0M | $281.0M | $702.0M | 7.2% |
| 2025-09-30 | $9.0B | $979.0M | $278.0M | $701.0M | 7.8% |
| 2025-12-31 | $9.5B | $1.8B | $421.0M | $1.4B | 14.6% |
| 2026-03-31 | $8.9B | -$208.0M | $268.0M | -$476.0M | -5.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 16.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$29.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Negative operating cash flow
Operating cash flow turned negative this quarter, a reversal from positive levels in both the prior quarter and the same quarter last year. This was the primary factor behind the negative free cash flow.
The negative operating cash flow directly led to a free cash flow deficit, as capital expenditure remained relatively stable compared to the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion turned negative this quarter, as operating cash flow was insufficient to cover capital expenditure, resulting in a negative free cash flow margin. This contrasts with the positive margins in both the prior quarter and the same quarter last year.
Compared to the prior quarter, operating cash flow and free cash flow weakened significantly, while capital expenditure was lower. Relative to the same quarter last year, operating cash flow and free cash flow also declined, with capital expenditure remaining at a similar level.
The trajectory of operating cash flow, given the termination fee reported in the filing, is a key item to monitor.
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 | $68.4B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.4% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 42.2x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.