Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased, while operating cash flow, free cash flow, and free cash flow margin all decreased compared to both the prior quarter and the same quarter last year. Capital expenditure was higher than both comparison periods.
- Cash conversion weakened as operating cash flow was lower relative to revenue, and capital expenditure increased, reducing free cash flow and margin compared to both prior periods.
- Compared to the prior quarter, revenue was higher, but operating cash flow, free cash flow, and margin were lower. Versus the same quarter last year, revenue was higher, while operating cash flow, free cash flow, and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$307.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$355.8M
Cash generated by operations before capital spending.
CapEx
$48.8M
Capital spending and related asset purchases.
FCF margin
20.8%
The share of revenue converted into free cash flow.
TTM FCF yield
1.4%
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 | $1.3B | $377.6M | $44.1M | $333.5M | 26.1% |
| 2025-09-30 | $1.3B | $310.7M | $33.7M | $277.0M | 20.7% |
| 2025-12-31 | $1.4B | $553.5M | $41.0M | $512.5M | 35.6% |
| 2026-03-31 | $1.5B | $355.8M | $48.8M | $307.0M | 20.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 91.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | 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 was lower sequentially and year-over-year, despite higher revenue, indicating a higher proportion of revenue was not converted to cash from operations.
This directly reduced free cash flow and margin, making it the strongest observable driver of the quarter's performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened as operating cash flow was lower relative to revenue, and capital expenditure increased, reducing free cash flow and margin compared to both prior periods.
Compared to the prior quarter, revenue was higher, but operating cash flow, free cash flow, and margin were lower. Versus the same quarter last year, revenue was higher, while operating cash flow, free cash flow, and margin were lower.
Monitor the trend in capital expenditure, which was higher in both comparisons and contributed to the decline in free cash flow.
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 | $103.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | 1.4% | 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.