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 increased compared to the same quarter last year, resulting in higher free cash flow and an improved free cash flow margin. However, relative to the prior quarter, operating cash flow and free cash flow were significantly lower despite a slight rise in revenue.
- Revenue rose sequentially and year-over-year. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure decreased from the prior quarter but increased from a year ago. Free cash flow followed the operating cash flow pattern, and the free cash flow margin weakened sequentially but strengthened year-over-year.
- Compared to the prior quarter, free cash flow and margin were lower, while revenue was slightly higher. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$609.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$747.0M
Cash generated by operations before capital spending.
CapEx
$138.0M
Capital spending and related asset purchases.
FCF margin
11.4%
The share of revenue converted into free cash flow.
TTM FCF yield
5.2%
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 | $884.0M | $108.0M | $776.0M | 15.2% |
| 2025-09-30 | $5.1B | $1.3B | $155.0M | $1.1B | 21.6% |
| 2025-12-31 | $5.2B | $1.5B | $177.0M | $1.3B | 24.4% |
| 2026-03-31 | $5.3B | $747.0M | $138.0M | $609.0M | 11.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 94.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | 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 Growth
The company's filing attributes the increase in operating cash flow from the year-ago period to changes in working capital and higher net income, excluding non-cash items.
This improvement supported the year-over-year expansion in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose sequentially and year-over-year. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure decreased from the prior quarter but increased from a year ago. Free cash flow followed the operating cash flow pattern, and the free cash flow margin weakened sequentially but strengthened year-over-year.
Compared to the prior quarter, free cash flow and margin were lower, while revenue was slightly higher. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin all improved.
Monitor changes in working capital, which the filing notes as a factor in the operating cash flow increase compared to the year-ago period.
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 | $72.8B | Used as the denominator for FCF yield. |
| TTM FCF yield | 5.2% | 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.