Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened as operating cash flow declined despite higher revenue, and capital expenditure increased, leading to lower free cash flow and margin. The quarter's margins were lower than both the prior quarter and the same quarter a year ago.
- Revenue increased compared to the prior quarter, but operating cash flow decreased, while capital expenditure remained similar, resulting in a lower free cash flow and a narrower free cash flow margin.
- Compared to the previous quarter, revenue was higher, operating cash flow was lower, capital expenditure was similar, and free cash flow and margin were lower. Versus the same quarter a year ago, revenue was higher, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$273.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$496.0M
Cash generated by operations before capital spending.
CapEx
$223.0M
Capital spending and related asset purchases.
FCF margin
13.7%
The share of revenue converted into free cash flow.
TTM FCF yield
8.9%
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 | $1.9B | $563.0M | $245.0M | $318.0M | 16.8% |
| 2025-09-30 | $1.7B | $1.1B | $347.0M | $717.0M | 43.2% |
| 2025-12-31 | $1.9B | $539.0M | $226.0M | $313.0M | 16.7% |
| 2026-03-31 | $2.0B | $496.0M | $223.0M | $273.0M | 13.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 40.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.2% | 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.
Declining Operating Cash Flow
Operating cash flow fell compared to both the prior quarter and the same quarter a year ago, despite higher revenue in both comparisons.
This reduction, combined with increased capital expenditure, compressed free cash flow and margin significantly.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to the prior quarter, but operating cash flow decreased, while capital expenditure remained similar, resulting in a lower free cash flow and a narrower free cash flow margin.
Compared to the previous quarter, revenue was higher, operating cash flow was lower, capital expenditure was similar, and free cash flow and margin were lower. Versus the same quarter a year ago, revenue was higher, operating cash flow was lower, capital expenditure was higher, and free cash flow and margin were lower.
Monitor capital expenditure levels, which have risen from a year ago and remain elevated, as they directly impact free cash flow generation.
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 | $18.3B | Used as the denominator for FCF yield. |
| TTM FCF yield | 8.9% | 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.