Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose from both the prior quarter and the same quarter last year. Operating cash flow and free cash flow declined sharply compared to the preceding quarter and the year-ago period, causing a much lower free cash flow margin.
- Revenue was higher than the previous quarter and the year-ago quarter. Operating cash flow and free cash flow fell substantially relative to both comparison periods, resulting in a much weaker free cash flow margin. Capital expenditure was lower than both the prior quarter and the same quarter last year.
- Compared to the immediately preceding quarter, revenue was slightly lower, while operating cash flow, free cash flow, and margin were all substantially lower. Versus the same quarter one year earlier, revenue was higher, yet operating cash flow, free cash flow, and margin were all markedly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$430.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$459.0M
Cash generated by operations before capital spending.
CapEx
$29.0M
Capital spending and related asset purchases.
FCF margin
8.8%
The share of revenue converted into free cash flow.
TTM FCF yield
14.9%
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 | $4.5B | $1.8B | $38.0M | $1.7B | 38.4% |
| 2025-09-30 | $4.9B | $2.2B | $44.0M | $2.2B | 44.1% |
| 2025-12-31 | $5.0B | $2.7B | $44.0M | $2.6B | 52.0% |
| 2026-03-31 | $4.9B | $459.0M | $29.0M | $430.0M | 8.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 47.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | 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.
Cash flow contraction despite revenue growth
The most notable observable driver is the steep decline in operating cash flow and free cash flow despite a revenue level higher than a year ago. This directly caused a much lower free cash flow margin compared to both the prior quarter and the year-ago quarter.
Free cash flow margin fell sharply from both the prior quarter and the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the previous quarter and the year-ago quarter. Operating cash flow and free cash flow fell substantially relative to both comparison periods, resulting in a much weaker free cash flow margin. Capital expenditure was lower than both the prior quarter and the same quarter last year.
Compared to the immediately preceding quarter, revenue was slightly lower, while operating cash flow, free cash flow, and margin were all substantially lower. Versus the same quarter one year earlier, revenue was higher, yet operating cash flow, free cash flow, and margin were all markedly lower.
Monitor the magnitude of operating cash flow relative to revenue, as the conversion weakened considerably this quarter.
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 | $46.6B | Used as the denominator for FCF yield. |
| TTM FCF yield | 14.9% | 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.