Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow declined from both the prior quarter and a year ago, but free cash flow improved compared to the same quarter last year. The free cash flow margin increased year-over-year, despite weakening from the immediate prior quarter.
- Operating cash flow as a proportion of revenue was lower sequentially, while capital expenditure was reduced, resulting in a free cash flow margin that strengthened year-over-year but weakened from the preceding quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue and operating cash flow were lower, capital expenditure was lower, and free cash flow and free cash flow margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$861.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$40.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$87.5M
Cash generated by operations before capital spending.
CapEx
$46.7M
Capital spending and related asset purchases.
FCF margin
1.2%
The share of revenue converted into free cash flow.
TTM FCF yield
10.7%
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 | $4.2B | $341.0M | $88.7M | $252.3M | 6.0% |
| 2025-09-30 | $3.9B | $547.7M | $85.8M | $461.9M | 11.7% |
| 2025-12-31 | $3.4B | $194.8M | $88.1M | $106.7M | 3.2% |
| 2026-03-31 | $3.3B | $87.5M | $46.7M | $40.7M | 1.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -85.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | 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 Contraction
Operating cash flow decreased sequentially and year-over-year, despite a reduction in capital expenditure. This was the strongest observable driver behind a lower sequential free cash flow, though free cash flow improved year-over-year due to a larger decline in capital expenditure.
The year-over-year improvement in free cash flow was achieved with lower operating cash flow, indicating that reduced capital expenditure was the primary offsetting factor.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower sequentially, while capital expenditure was reduced, resulting in a free cash flow margin that strengthened year-over-year but weakened from the preceding quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue and operating cash flow were lower, capital expenditure was lower, and free cash flow and free cash flow margin were higher.
Monitor operating cash flow relative to revenue, as it declined sequentially and year-over-year while capital expenditure was reduced.
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 | $8.1B | Used as the denominator for FCF yield. |
| TTM FCF yield | 10.7% | 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.