Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was nearly stable compared to the prior quarter, while free cash flow rose and the free cash flow margin improved slightly. Versus the same quarter last year, revenue was higher, operating cash flow and free cash flow strengthened markedly, and the free cash flow margin turned positive.
- Operating cash flow, after deducting capital expenditure that was lower than both the preceding quarter and the year-ago quarter, produced positive free cash flow and a positive margin, indicating improved cash conversion relative to prior periods.
- Compared to the prior quarter, revenue was slightly lower, operating cash flow was lower, but capital expenditure decreased more, resulting in higher free cash flow and a slightly improved margin. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower, leading to a substantial margin improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$231.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$107.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$152.0M
Cash generated by operations before capital spending.
CapEx
$45.0M
Capital spending and related asset purchases.
FCF margin
11.9%
The share of revenue converted into free cash flow.
TTM FCF yield
2.0%
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 | $781.3M | $146.7M | $118.5M | $28.2M | 3.6% |
| 2025-09-30 | $833.6M | $68.2M | $73.7M | -$5.5M | -0.7% |
| 2025-12-31 | $899.9M | $162.1M | $60.8M | $101.3M | 11.3% |
| 2026-03-31 | $897.0M | $152.0M | $45.0M | $107.0M | 11.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 3566.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | $215.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved free cash flow generation
Free cash flow turned from negative to positive year-over-year and rose sequentially, driven primarily by higher operating cash flow combined with reduced capital spending. The free cash flow margin improved on both comparisons.
The company generated positive free cash flow in the quarter, strengthening its cash position relative to both the prior quarter and the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow, after deducting capital expenditure that was lower than both the preceding quarter and the year-ago quarter, produced positive free cash flow and a positive margin, indicating improved cash conversion relative to prior periods.
Compared to the prior quarter, revenue was slightly lower, operating cash flow was lower, but capital expenditure decreased more, resulting in higher free cash flow and a slightly improved margin. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower, leading to a substantial margin improvement.
Monitor the level of capital expenditure relative to operating cash flow, as lower capex was a key factor in the free cash flow improvement this 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 | $11.3B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.0% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 48.0x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.