Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both decreased from the prior quarter, while free cash flow margin improved. Compared to the same quarter last year, revenue increased but operating cash flow and free cash flow were lower, resulting in a weaker margin.
- Operating cash flow as a percentage of revenue was lower than both the prior quarter and the same quarter last year, indicating a weaker conversion of revenue into cash. Capital expenditure was higher than the prior quarter but lower than the year-ago quarter, partially offsetting the decline in operating cash flow.
- Compared to the prior quarter, revenue and operating cash flow were lower, but free cash flow margin improved due to a smaller decline in free cash flow relative to revenue. Versus the same quarter last year, revenue was higher while operating cash flow and free cash flow were lower, leading to a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$957.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$991.0M
Cash generated by operations before capital spending.
CapEx
$33.4M
Capital spending and related asset purchases.
FCF margin
26.5%
The share of revenue converted into free cash flow.
TTM FCF yield
4.8%
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 | $3.7B | $888.5M | $40.1M | $848.4M | 22.9% |
| 2025-09-30 | $3.1B | $1.6B | $23.9M | $1.6B | 51.0% |
| 2025-12-31 | $4.4B | $1.1B | $22.4M | $1.0B | 24.0% |
| 2026-03-31 | $3.6B | $991.0M | $33.4M | $957.6M | 26.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 147.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.0B | 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 decreased from both the prior quarter and the same quarter last year, despite revenue being higher than the year-ago period. This divergence is the strongest observable driver of the current quarter's free cash flow performance.
The lower operating cash flow directly reduced free cash flow compared to both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue was lower than both the prior quarter and the same quarter last year, indicating a weaker conversion of revenue into cash. Capital expenditure was higher than the prior quarter but lower than the year-ago quarter, partially offsetting the decline in operating cash flow.
Compared to the prior quarter, revenue and operating cash flow were lower, but free cash flow margin improved due to a smaller decline in free cash flow relative to revenue. Versus the same quarter last year, revenue was higher while operating cash flow and free cash flow were lower, leading to a weakened margin.
Monitor the trend in operating cash flow relative to revenue, as its decline versus both comparison periods suggests a shift in cash generation efficiency.
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 | $92.5B | Used as the denominator for FCF yield. |
| TTM FCF yield | 4.8% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 23.4x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.