Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved in Q3 versus the prior quarter, driven by a significant increase in operating cash flow that more than offset a modest rise in capital expenditure. Compared to the same quarter last year, free cash flow was higher and the free cash flow margin was stable.
- Revenue increased sequentially and year-over-year. Operating cash flow was sequentially higher and also above the year-ago level. Free cash flow rose sharply from the prior quarter and was higher than the same quarter last year, with the free cash flow margin improving from the prior quarter and remaining broadly stable versus the year-ago period.
- The most significant sequential improvement was in free cash flow, which moved from a low level in the prior quarter to a substantially higher level, reflecting a much larger operating cash flow. Capital expenditure was only slightly higher than the prior quarter, aiding the conversion. Free cash flow was also above the year-ago quarter, though the margin was essentially unchanged year-over-year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$456.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$802.0M
Cash generated by operations before capital spending.
CapEx
$345.5M
Capital spending and related asset purchases.
FCF margin
9.4%
The share of revenue converted into free cash flow.
TTM FCF yield
3.1%
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 |
|---|---|---|---|---|---|
| 2025-05-10 | $4.5B | $769.0M | $345.9M | $423.1M | 9.5% |
| 2025-11-22 | $4.6B | $944.2M | $314.2M | $630.0M | 13.6% |
| 2026-02-14 | $4.3B | $373.4M | $337.8M | $35.6M | 0.8% |
| 2026-05-09 | $4.8B | $802.0M | $345.5M | $456.5M | 9.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 71.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.1% | 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 strength
Operating cash flow in the current quarter was substantially higher than in the immediately preceding quarter, providing the primary lift to free cash flow. This improvement occurred alongside an increase in revenue.
The strong operating cash flow was the key factor enabling the sequential rise in free cash flow and the year-over-year increase.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased sequentially and year-over-year. Operating cash flow was sequentially higher and also above the year-ago level. Free cash flow rose sharply from the prior quarter and was higher than the same quarter last year, with the free cash flow margin improving from the prior quarter and remaining broadly stable versus the year-ago period.
The most significant sequential improvement was in free cash flow, which moved from a low level in the prior quarter to a substantially higher level, reflecting a much larger operating cash flow. Capital expenditure was only slightly higher than the prior quarter, aiding the conversion. Free cash flow was also above the year-ago quarter, though the margin was essentially unchanged year-over-year.
Monitor capital expenditure levels relative to operating cash flow, as the sequential increase in capex was small but could weigh on free cash flow if it rises more sharply in future 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 | $49.5B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.1% | 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.