Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply as operating cash flow rose more than capital expenditure, lifting free cash flow and margin. The current quarter's free cash flow margin was higher than both the prior quarter and the same quarter last year.
- Revenue was higher than the prior quarter and the year-ago quarter. Operating cash flow increased substantially relative to both comparison periods, while capital expenditure rose modestly. The resulting free cash flow and free cash flow margin were higher sequentially and year-over-year.
- Compared with the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, all metrics were higher, with operating cash flow and free cash flow showing the largest improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$594.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$645.5M
Cash generated by operations before capital spending.
CapEx
$51.2M
Capital spending and related asset purchases.
FCF margin
24.0%
The share of revenue converted into free cash flow.
TTM FCF yield
8.5%
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 | $2.6B | $160.9M | $26.6M | $134.3M | 5.1% |
| 2025-09-30 | $2.5B | $1.3B | $46.2M | $1.2B | 48.4% |
| 2025-12-31 | $2.3B | $511.9M | $43.9M | $468.0M | 20.5% |
| 2026-03-31 | $2.5B | $645.5M | $51.2M | $594.3M | 24.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 186.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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 was the strongest observable driver, rising more than revenue and far exceeding the increase in capital expenditure. This directly lifted free cash flow and margin.
Higher operating cash flow was the primary factor behind the improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter and the year-ago quarter. Operating cash flow increased substantially relative to both comparison periods, while capital expenditure rose modestly. The resulting free cash flow and free cash flow margin were higher sequentially and year-over-year.
Compared with the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, all metrics were higher, with operating cash flow and free cash flow showing the largest improvement.
Monitor the trend in capital expenditure relative to operating cash flow, as the current quarter's ratio was lower than both comparison 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 | $28.3B | Used as the denominator for FCF yield. |
| TTM FCF yield | 8.5% | 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.