Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened sharply from the prior quarter and also declined versus the same quarter last year, despite revenue being higher in both comparisons. The cash conversion rate contracted significantly as operating cash flow fell while revenue grew.
- Revenue was higher than both the prior quarter and the year-ago quarter, but operating cash flow was substantially lower than both periods, resulting in a free cash flow margin that contracted sharply from the prior quarter and also declined from the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was slightly lower while operating cash flow and free cash flow were significantly lower, and the free cash flow margin weakened. Compared to the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$171.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$348.0M
Cash generated by operations before capital spending.
CapEx
$177.0M
Capital spending and related asset purchases.
FCF margin
3.3%
The share of revenue converted into free cash flow.
TTM FCF yield
5.5%
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 | $5.1B | $1.3B | $157.0M | $1.1B | 22.3% |
| 2025-09-30 | $5.1B | $1.3B | $181.0M | $1.2B | 22.9% |
| 2025-12-31 | $5.3B | $1.4B | $351.0M | $1.0B | 19.2% |
| 2026-03-31 | $5.2B | $348.0M | $177.0M | $171.0M | 3.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 12.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | 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 Decline
Operating cash flow was substantially lower than both the prior quarter and the year-ago quarter, while capital expenditure was lower than the prior quarter but similar to the year-ago quarter. This drove the sharp contraction in free cash flow and margin.
The lower operating cash flow was the primary observable factor behind the weakened free cash flow generation this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter, but operating cash flow was substantially lower than both periods, resulting in a free cash flow margin that contracted sharply from the prior quarter and also declined from the year-ago quarter.
Compared to the immediately preceding quarter, revenue was slightly lower while operating cash flow and free cash flow were significantly lower, and the free cash flow margin weakened. Compared to the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor the trajectory of operating cash flow relative to revenue, as the current quarter's cash conversion was materially lower despite higher revenue.
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 | $63.4B | Used as the denominator for FCF yield. |
| TTM FCF yield | 5.5% | 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.