Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The current quarter delivered higher free cash flow and an improved margin as operating cash flow increased while capital expenditure was lower than the prior quarter. Revenue was also higher compared to both the immediately preceding quarter and the same quarter one year earlier.
- Revenue was higher, and operating cash flow grew at a faster pace, while capital expenditure was lower than the prior quarter, resulting in higher free cash flow and an improved margin. Compared to the year-ago quarter, operating cash flow and free cash flow were also higher, though capital expenditure was higher.
- Compared to the immediately preceding quarter, free cash flow and margin were higher, driven by stronger operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow was higher and margin was slightly higher, with operating cash flow higher but capital expenditure also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$471.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$651.4M
Cash generated by operations before capital spending.
CapEx
$180.3M
Capital spending and related asset purchases.
FCF margin
15.3%
The share of revenue converted into free cash flow.
TTM FCF yield
3.2%
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 | $3.1B | $561.3M | $160.6M | $400.7M | 13.1% |
| 2025-09-30 | $3.0B | $569.7M | $163.5M | $406.2M | 13.5% |
| 2025-12-31 | $3.0B | $425.8M | $197.5M | $228.4M | 7.7% |
| 2026-03-31 | $3.1B | $651.4M | $180.3M | $471.0M | 15.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 155.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.8% | 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
Operating cash flow increased compared to both the prior quarter and the same quarter last year, providing the main support for higher free cash flow.
The growth in operating cash flow was the primary factor behind the improvement in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, and operating cash flow grew at a faster pace, while capital expenditure was lower than the prior quarter, resulting in higher free cash flow and an improved margin. Compared to the year-ago quarter, operating cash flow and free cash flow were also higher, though capital expenditure was higher.
Compared to the immediately preceding quarter, free cash flow and margin were higher, driven by stronger operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow was higher and margin was slightly higher, with operating cash flow higher but capital expenditure also higher.
The level of capital expenditure, which decreased from the prior quarter but remained above the year-ago level, is a concrete metric to monitor.
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 | $46.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.2% | 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.