Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's cash conversion was modest, with free cash flow margin significantly lower than the preceding quarter but improved from a negative margin a year earlier. The strong operating cash flow generation seen in the prior quarter weakened substantially, while capital expenditure also decreased.
- Revenue was stable compared to the preceding quarter, but operating cash flow was much lower, leading to a much smaller free cash flow. The free cash flow margin was low, reflecting a less efficient conversion of sales into cash after capital expenditure.
- Relative to the preceding quarter, free cash flow was sharply lower, as operating cash flow declined more than capital expenditure. Compared to the same quarter a year earlier, free cash flow turned positive from negative, driven by an improvement in operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$120.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$309.0M
Cash generated by operations before capital spending.
CapEx
$189.0M
Capital spending and related asset purchases.
FCF margin
1.4%
The share of revenue converted into free cash flow.
TTM FCF yield
2.9%
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 | $8.6B | $785.0M | $231.0M | $554.0M | 6.4% |
| 2025-09-30 | $8.3B | $1.3B | $298.0M | $1.0B | 12.1% |
| 2025-12-31 | $8.5B | $1.5B | $544.0M | $990.0M | 11.6% |
| 2026-03-31 | $8.4B | $309.0M | $189.0M | $120.0M | 1.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 17.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | 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 Volatility
Operating cash flow this quarter was much lower than the preceding quarter, while capital expenditure also decreased but not as dramatically. This was the primary factor behind the decline in free cash flow.
The lower operating cash flow reduced free cash flow significantly, resulting in a much lower free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the preceding quarter, but operating cash flow was much lower, leading to a much smaller free cash flow. The free cash flow margin was low, reflecting a less efficient conversion of sales into cash after capital expenditure.
Relative to the preceding quarter, free cash flow was sharply lower, as operating cash flow declined more than capital expenditure. Compared to the same quarter a year earlier, free cash flow turned positive from negative, driven by an improvement in operating cash flow.
Monitor the trajectory of operating cash flow, which significantly decreased from the preceding 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 | $93.2B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.9% | 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.