Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year, resulting in a higher free cash flow margin. The company's liquidity position remains supported by cash, cash equivalents, and marketable securities, as noted in the filing.
- Operating cash flow as a share of revenue improved, with capital expenditure increasing but remaining a small portion of operating cash flow, leading to a free cash flow margin that was higher than both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were higher, and the free cash flow margin improved. Versus the same quarter last year, all metrics were higher, with the margin showing a significant increase.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$54.5M
Capital spending and related asset purchases.
FCF margin
60.5%
The share of revenue converted into free cash flow.
TTM FCF yield
2.3%
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 | $2.2B | $1.2B | $24.0M | $1.2B | 53.3% |
| 2025-09-30 | $2.3B | $1.3B | $30.1M | $1.2B | 53.6% |
| 2025-12-31 | $2.5B | $1.3B | $37.0M | $1.2B | 49.2% |
| 2026-03-31 | $2.7B | $1.7B | $54.5M | $1.6B | 60.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 160.2% | 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 Growth
Operating cash flow rose substantially compared to the prior quarter and the same quarter last year, driven by higher revenue. This improvement was the main factor behind the higher free cash flow and margin.
The stronger cash generation provides the company with increased flexibility to fund its ongoing operations and growth investments.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue improved, with capital expenditure increasing but remaining a small portion of operating cash flow, leading to a free cash flow margin that was higher than both the prior quarter and the year-ago quarter.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were higher, and the free cash flow margin improved. Versus the same quarter last year, all metrics were higher, with the margin showing a significant increase.
The increase in deferred revenue from the prior quarter, as presented in the balance sheet within the filing, may be a factor to monitor.
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 | $229.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.3% | 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.