Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was strong for the quarter, with the margin improving significantly from the prior quarter. Compared to the same quarter last year, free cash flow was slightly lower while revenue was higher, resulting in a weaker margin.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased substantially from the prior quarter, while capital expenditure was slightly higher than the prior quarter but lower than a year ago. The resulting free cash flow margin was higher than the prior quarter but lower than the same quarter last year.
- Compared to the preceding quarter, free cash flow was higher and the margin improved markedly. Relative to the same quarter one year earlier, free cash flow was slightly lower and the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.2B
Cash generated by operations before capital spending.
CapEx
$107.0M
Capital spending and related asset purchases.
FCF margin
56.2%
The share of revenue converted into free cash flow.
TTM FCF yield
6.7%
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | $3.2B | Cash generated by operations before capital spending. |
| Capital expenditures | $107.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $3.1B | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $4.3B | $2.7B | $86.0M | $2.6B | 60.5% |
| 2022-09-30 | $6.1B | $2.0M | $98.0M | -$96.0M | -1.6% |
| 2022-12-31 | $4.0B | $2.2B | $75.0M | $2.1B | 51.8% |
| 2023-03-31 | $3.8B | $2.9B | $88.0M | $2.8B | 74.1% |
| 2023-06-30 | $5.5B | $1.7B | $92.0M | $1.6B | 30.1% |
| 2023-09-30 | $7.3B | $1.4B | $71.0M | $1.3B | 17.7% |
| 2023-12-31 | $4.8B | $1.3B | $94.0M | $1.3B | 26.2% |
| 2024-03-31 | $4.4B | $2.7B | $130.0M | $2.6B | 58.3% |
| 2024-06-30 | $5.9B | $2.5B | $146.0M | $2.4B | 40.6% |
| 2024-09-30 | $8.0B | $2.4B | $77.0M | $2.3B | 28.7% |
| 2024-12-31 | $5.5B | $721.0M | $76.0M | $645.0M | 11.8% |
| 2025-03-31 | $4.8B | $3.3B | $121.0M | $3.2B | 66.4% |
| 2025-06-30 | $6.8B | $3.2B | $64.0M | $3.1B | 46.1% |
| 2025-09-30 | $9.0B | $1.4B | $64.0M | $1.4B | 15.2% |
| 2025-12-31 | $6.3B | $1.5B | $73.0M | $1.4B | 22.3% |
| 2026-03-31 | $5.5B | $3.2B | $107.0M | $3.1B | 56.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | n/a | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.4B | 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 increased substantially from the prior quarter even though revenue declined, demonstrating a higher conversion rate. This improvement was the strongest observable driver of the quarter's free cash flow margin.
This driver was the primary factor behind the significant improvement in free cash flow margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased substantially from the prior quarter, while capital expenditure was slightly higher than the prior quarter but lower than a year ago. The resulting free cash flow margin was higher than the prior quarter but lower than the same quarter last year.
Compared to the preceding quarter, free cash flow was higher and the margin improved markedly. Relative to the same quarter one year earlier, free cash flow was slightly lower and the margin weakened.
Monitor the change in deferred merchant bookings, which increased from the end of the prior quarter according to the filing, as it represents future revenue obligations.
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 | $135.5B | Used as the denominator for FCF yield. |
| TTM FCF yield | 6.7% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 15.3x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |