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, while operating cash flow and free cash flow decreased significantly. Free cash flow margin weakened versus both the preceding quarter and the same quarter last year.
- Operating cash flow as a proportion of revenue was lower than the prior quarter and slightly below the year-ago level. Capital expenditure remained relatively stable, resulting in a free cash flow margin that weakened sequentially and was slightly lower year over year.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were substantially lower, while revenue was essentially unchanged. Versus the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow were slightly lower, and free cash flow margin weakened modestly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$682.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$80.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$101.3M
Cash generated by operations before capital spending.
CapEx
$21.0M
Capital spending and related asset purchases.
FCF margin
7.8%
The share of revenue converted into free cash flow.
TTM FCF yield
5.8%
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 | $1.0B | $209.7M | $17.7M | $192.0M | 18.8% |
| 2025-09-30 | $1.1B | $229.5M | $19.7M | $209.8M | 19.6% |
| 2025-12-31 | $1.0B | $240.1M | $39.6M | $200.5M | 19.4% |
| 2026-03-31 | $1.0B | $101.3M | $21.0M | $80.3M | 7.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 58.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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 decreased significantly from the prior quarter and was slightly below the year-ago level, while revenue remained stable. This shift drove the reduction in free cash flow and margin.
The lower operating cash flow was the primary factor behind the weakened free cash flow and margin this 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 was lower than the prior quarter and slightly below the year-ago level. Capital expenditure remained relatively stable, resulting in a free cash flow margin that weakened sequentially and was slightly lower year over year.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were substantially lower, while revenue was essentially unchanged. Versus the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow were slightly lower, and free cash flow margin weakened modestly.
Monitor the trajectory of operating cash flow, as it declined sharply from the prior quarter despite stable revenue.
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 | $11.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | 5.8% | 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.