Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow were lower sequentially and year-over-year. The free cash flow margin weakened versus both prior quarters.
- Operating cash flow as a proportion of revenue decreased compared to the prior quarter and the same quarter last year, resulting in a lower free cash flow margin despite capital expenditure remaining relatively stable.
- Sequentially, revenue, operating cash flow, free cash flow, and margin all declined from the preceding quarter. Year-over-year, all metrics were also lower than the same quarter one year earlier.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$8.0M
Capital spending and related asset purchases.
FCF margin
26.1%
The share of revenue converted into free cash flow.
TTM FCF yield
16.5%
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 | $5.2B | $1.1B | $12.0M | $1.1B | 21.3% |
| 2025-09-30 | $5.1B | $2.2B | $12.0M | $2.2B | 42.6% |
| 2025-12-31 | $4.9B | $1.4B | $11.0M | $1.4B | 28.2% |
| 2026-03-31 | $4.5B | $1.2B | $8.0M | $1.2B | 26.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 112.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | 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 was lower both sequentially and year-over-year, while revenue also decreased, leading to a narrower free cash flow margin.
The decline in operating cash flow directly reduced free cash flow generation in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue decreased compared to the prior quarter and the same quarter last year, resulting in a lower free cash flow margin despite capital expenditure remaining relatively stable.
Sequentially, revenue, operating cash flow, free cash flow, and margin all declined from the preceding quarter. Year-over-year, all metrics were also lower than the same quarter one year earlier.
Monitor the trend of operating cash flow relative to revenue, as it was the primary factor behind the weakened free cash flow margin.
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 | $35.5B | Used as the denominator for FCF yield. |
| TTM FCF yield | 16.5% | 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.