Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as capital expenditure decreased while revenue increased. Compared to a year earlier, free cash flow declined due to a large increase in capital expenditure from zero.
- Revenue was higher than both the immediate prior quarter and the same quarter one year earlier. Operating cash flow was slightly lower than the prior quarter but stable versus the year-ago period. Free cash flow margin improved sharply from the prior quarter but weakened compared to the year-ago quarter.
- Sequentially, free cash flow improved significantly as capital expenditure fell by more than the decline in operating cash flow, while revenue grew. Year over year, free cash flow decreased substantially because capital expenditure increased from zero to a significant amount, despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$554.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$965.0M
Capital spending and related asset purchases.
FCF margin
9.4%
The share of revenue converted into free cash flow.
TTM FCF yield
3.6%
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 |
|---|---|---|---|---|---|
| 2025-06-30 | $5.1B | $1.2B | $1.4B | -$138.2M | -2.7% |
| 2025-09-30 | $6.0B | $2.5B | $298.0M | $2.2B | 36.3% |
| 2025-12-31 | $5.3B | $1.8B | $1.8B | $17.5M | 0.3% |
| 2026-03-31 | $5.9B | $1.5B | $965.0M | $554.0M | 9.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 61.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 16.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$49.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Lower Capital Expenditure
The reduction in capital expenditure from the prior quarter was the strongest observable factor contributing to improved free cash flow. Compared to a year ago, capital expenditure increased significantly, which weighed on free cash flow.
This change in capital expenditure directly influenced free cash flow, offsetting the impact of higher revenue and stable operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the immediate prior quarter and the same quarter one year earlier. Operating cash flow was slightly lower than the prior quarter but stable versus the year-ago period. Free cash flow margin improved sharply from the prior quarter but weakened compared to the year-ago quarter.
Sequentially, free cash flow improved significantly as capital expenditure fell by more than the decline in operating cash flow, while revenue grew. Year over year, free cash flow decreased substantially because capital expenditure increased from zero to a significant amount, despite higher revenue.
Monitor capital expenditure levels, which have shown large swings and are a primary driver of free cash flow variability compared to prior periods.
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 | $72.1B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.6% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 46.8x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.