Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained stable versus the same quarter one year earlier, supported by consistent operating cash flow, while capital expenditure rose. Compared with the immediately preceding quarter, free cash flow weakened as operating cash flow declined despite higher revenue.
- Revenue grew versus both prior periods. Operating cash flow was unchanged from the year-ago quarter but lower than the preceding quarter. Capital expenditure increased over both comparative periods. As a result, free cash flow was essentially flat year-over-year but decreased sequentially, and the free cash flow margin narrowed compared to both prior periods.
- Sequentially, revenue improved but a higher decline in operating cash flow drove a weakened free cash flow and margin. Year-over-year, revenue improved while operating cash flow remained stable; higher capital expenditure led to a slightly lower free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$10.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.2B
Cash generated by operations before capital spending.
CapEx
$58.0M
Capital spending and related asset purchases.
FCF margin
31.8%
The share of revenue converted into free cash flow.
TTM FCF yield
11.6%
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 |
|---|---|---|---|---|---|
| 2025-08-29 | $6.0B | $2.2B | $72.0M | $2.1B | 35.5% |
| 2025-11-28 | $6.2B | $3.2B | $34.0M | $3.1B | 50.5% |
| 2026-02-27 | $6.4B | $3.0B | $37.0M | $2.9B | 45.7% |
| 2026-05-29 | $6.6B | $2.2B | $58.0M | $2.1B | 31.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 123.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | $117.0M | 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 Divergence
Revenue increased from both comparative periods, yet operating cash flow did not keep pace. It was flat year-over-year and declined sequentially, making it the primary factor behind the sequential free cash flow decrease and margin compression.
This divergence between revenue growth and operating cash flow is the strongest observable factor affecting free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue grew versus both prior periods. Operating cash flow was unchanged from the year-ago quarter but lower than the preceding quarter. Capital expenditure increased over both comparative periods. As a result, free cash flow was essentially flat year-over-year but decreased sequentially, and the free cash flow margin narrowed compared to both prior periods.
Sequentially, revenue improved but a higher decline in operating cash flow drove a weakened free cash flow and margin. Year-over-year, revenue improved while operating cash flow remained stable; higher capital expenditure led to a slightly lower free cash flow margin.
The level of operating cash flow, which declined sequentially despite rising revenue, warrants observation.
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 | $88.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | 11.6% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 8.6x | A quick valuation bridge, not a full DCF. |