Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher sequentially and versus the prior year, while free cash flow margin weakened in both comparisons. Operating cash flow was lower than both prior periods despite higher revenue.
- Operating cash flow increased moderately from the preceding quarter but was lower than the same quarter last year, driving a free cash flow margin that fell between the two comparative periods. Capital expenditure was higher than both prior periods, contributing to a lower free cash flow conversion relative to revenue.
- Compared to the immediate preceding quarter, revenue was higher but operating cash flow was slightly lower and capital expenditure was higher, resulting in a lower free cash flow and a weakened margin. Versus the same quarter one year earlier, revenue was higher yet operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were both lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$287.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$301.1M
Cash generated by operations before capital spending.
CapEx
$13.6M
Capital spending and related asset purchases.
FCF margin
14.7%
The share of revenue converted into free cash flow.
TTM FCF yield
7.8%
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 | $2.1B | $699.7M | $15.6M | $684.1M | 33.1% |
| 2025-09-30 | $1.6B | $42.3M | $15.2M | $27.1M | 1.7% |
| 2025-12-31 | $1.7B | $324.8M | $6.3M | $318.5M | 18.6% |
| 2026-03-31 | $2.0B | $301.1M | $13.6M | $287.5M | 14.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 104.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.9B | 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 decline vs. revenue growth
Revenue was higher in both the sequential and year-ago comparisons, yet operating cash flow was lower than both prior periods. This disconnect is the strongest observable driver of the weaker free cash flow conversion.
The lower operating cash flow, combined with higher capital expenditure, resulted in a free cash flow margin that was lower than both the preceding quarter and the same quarter one year earlier.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased moderately from the preceding quarter but was lower than the same quarter last year, driving a free cash flow margin that fell between the two comparative periods. Capital expenditure was higher than both prior periods, contributing to a lower free cash flow conversion relative to revenue.
Compared to the immediate preceding quarter, revenue was higher but operating cash flow was slightly lower and capital expenditure was higher, resulting in a lower free cash flow and a weakened margin. Versus the same quarter one year earlier, revenue was higher yet operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were both lower.
Monitor the trajectory of operating cash flow relative to revenue, as it declined despite revenue growth in both comparisons.
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 | $16.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | 7.8% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 15.0x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.