Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Centene's free cash flow margin improved sharply from the prior quarter and the year-ago period, driven by a large increase in operating cash flow. Revenue was stable sequentially but higher year over year.
- Revenue was stable sequentially and higher than the year-ago quarter, while operating cash flow rose substantially compared to both periods. With capital expenditure remaining relatively steady, free cash flow and its margin improved significantly.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all much higher. Versus the same quarter one year earlier, revenue was higher and all cash flow metrics improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$7.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.4B
Cash generated by operations before capital spending.
CapEx
$200.0M
Capital spending and related asset purchases.
FCF margin
9.3%
The share of revenue converted into free cash flow.
TTM FCF yield
21.0%
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 | $42.5B | $1.8B | $208.0M | $1.6B | 3.7% |
| 2025-09-30 | $44.9B | $1.4B | $211.0M | $1.1B | 2.6% |
| 2025-12-31 | $44.7B | $437.0M | $213.0M | $224.0M | 0.5% |
| 2026-03-31 | $44.7B | $4.4B | $200.0M | $4.2B | 9.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 270.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | $4.9B | 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 Surge
Net cash provided by operating activities increased sharply from both the prior quarter and the year-ago quarter, supported by net earnings, a partial sale of receivables, and timing of payments, partially offset by new receivables and a delayed premium payment.
This drove a substantial improvement in free cash flow and 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 sequentially and higher than the year-ago quarter, while operating cash flow rose substantially compared to both periods. With capital expenditure remaining relatively steady, free cash flow and its margin improved significantly.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all much higher. Versus the same quarter one year earlier, revenue was higher and all cash flow metrics improved.
The filing notes a temporary benefit from the timing of payments; monitor whether this benefit reverses in subsequent quarters.
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 | $33.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | 21.0% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 4.1x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.