Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined sharply versus the prior quarter and also weakened compared to the same quarter last year, driven by a steep drop in operating cash flow. Revenue was stable year over year and slightly higher sequentially, but cash conversion deteriorated significantly.
- Operating cash flow as a percentage of revenue fell to a low level, resulting in a free cash flow margin well below both the prior quarter and the year-ago quarter. Capital expenditure remained modest and consistent.
- Compared to the prior quarter, free cash flow dropped by more than three quarters, while revenue grew modestly. Versus the same quarter last year, free cash flow was about a third lower, even though revenue was unchanged.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$857.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$66.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$68.6M
Cash generated by operations before capital spending.
CapEx
$2.6M
Capital spending and related asset purchases.
FCF margin
1.6%
The share of revenue converted into free cash flow.
TTM FCF yield
3.6%
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 | $4.1B | $227.1M | $7.3M | $219.8M | 5.3% |
| 2025-09-30 | $4.1B | $275.4M | $6.0M | $269.5M | 6.5% |
| 2025-12-31 | $3.9B | $305.4M | $3.0M | $302.4M | 7.7% |
| 2026-03-31 | $4.0B | $68.6M | $2.6M | $66.0M | 1.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 44.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.2B | 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 fell substantially from both the prior quarter and the year-ago quarter, despite stable revenue. This drove the significant reduction in free cash flow and margin.
The weakened cash generation from operations reduced free cash flow to a level well below historical comparisons.
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 fell to a low level, resulting in a free cash flow margin well below both the prior quarter and the year-ago quarter. Capital expenditure remained modest and consistent.
Compared to the prior quarter, free cash flow dropped by more than three quarters, while revenue grew modestly. Versus the same quarter last year, free cash flow was about a third lower, even though revenue was unchanged.
Monitor the trajectory of operating cash flow, as its sharp decline was the primary factor behind the weak free cash flow this quarter.
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 | $23.5B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.6% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 28.8x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.