Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all increased compared to both the prior quarter and the same quarter last year. The free cash flow margin was slightly lower than both comparison periods, reflecting a proportionally larger rise in revenue relative to free cash flow.
- Operating cash flow as a share of revenue was higher than the prior quarter but slightly lower than a year ago. Capital expenditure was lower than the prior quarter but higher than the same quarter last year, resulting in free cash flow that increased sequentially and year-over-year, while the free cash flow margin weakened modestly versus both periods.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were higher, while capital expenditure was lower and the free cash flow margin was slightly lower. Versus the same quarter last year, all metrics were higher except the free cash flow margin, which was slightly lower, and capital expenditure, which was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$21.8M
Capital spending and related asset purchases.
FCF margin
65.9%
The share of revenue converted into free cash flow.
TTM FCF yield
26.7%
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 | $1.7B | $1.1B | $18.4M | $1.0B | 61.5% |
| 2025-09-30 | $1.5B | $968.1M | $18.4M | $949.7M | 61.8% |
| 2025-12-31 | $1.6B | $1.1B | $32.5M | $1.1B | 66.8% |
| 2026-03-31 | $1.9B | $1.3B | $21.8M | $1.2B | 65.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 107.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | 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.
Higher Operating Cash Flow
Operating cash flow increased both sequentially and year-over-year, supported by higher revenue. The filing notes that net cash provided by operating activities rose largely due to an increase in trading volume and higher interest earned on reinvestment of collateral, net of distributions.
The rise in operating cash flow was the primary factor behind the higher free cash flow in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was higher than the prior quarter but slightly lower than a year ago. Capital expenditure was lower than the prior quarter but higher than the same quarter last year, resulting in free cash flow that increased sequentially and year-over-year, while the free cash flow margin weakened modestly versus both periods.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were higher, while capital expenditure was lower and the free cash flow margin was slightly lower. Versus the same quarter last year, all metrics were higher except the free cash flow margin, which was slightly lower, and capital expenditure, which was higher.
Monitor the trend in capital expenditure, which was higher year-over-year but lower sequentially, as it directly affects free cash flow conversion.
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 | $16.2B | Used as the denominator for FCF yield. |
| TTM FCF yield | 26.7% | 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.