Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the same quarter last year, driven by higher operating cash flow and lower capital expenditure. Compared to the prior quarter, free cash flow decreased as operating cash flow fell while capital spending was also lower.
- Revenue was slightly lower than the year-ago quarter but higher than the prior quarter. Operating cash flow converted into free cash flow after capital expenditure, resulting in a free cash flow margin that was higher than the year-ago quarter but lower than the prior quarter.
- Compared to the prior quarter, operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Compared to the same quarter last year, operating cash flow, free cash flow, and free cash flow margin were all substantially higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$647.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$118.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$129.4M
Cash generated by operations before capital spending.
CapEx
$10.5M
Capital spending and related asset purchases.
FCF margin
12.6%
The share of revenue converted into free cash flow.
TTM FCF yield
14.0%
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 | $139.6M | $17.1M | $122.5M | 12.1% |
| 2025-09-30 | $942.5M | $255.4M | $14.8M | $240.6M | 25.5% |
| 2025-12-31 | $912.5M | $183.1M | $17.6M | $165.5M | 18.1% |
| 2026-03-31 | $945.6M | $129.4M | $10.5M | $118.9M | 12.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 100.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$430.6M | 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 Recovery
Operating cash flow was significantly higher than the same quarter last year, which was the primary factor behind the improvement in free cash flow. Capital expenditure was also lower compared to both the prior quarter and the year-ago quarter.
The combination of higher operating cash flow and lower capital expenditure drove free cash flow well above the year-ago level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the year-ago quarter but higher than the prior quarter. Operating cash flow converted into free cash flow after capital expenditure, resulting in a free cash flow margin that was higher than the year-ago quarter but lower than the prior quarter.
Compared to the prior quarter, operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Compared to the same quarter last year, operating cash flow, free cash flow, and free cash flow margin were all substantially higher.
Monitor the allowance for credit losses, which increased from the prior quarter end, as it reflects the company's estimate of expected credit losses over the life of receivables.
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 | $4.6B | Used as the denominator for FCF yield. |
| TTM FCF yield | 14.0% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 7.8x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.