Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable sequentially. Free cash flow improved year over year primarily due to lower capital expenditure.
- Operating cash flow was slightly lower than the prior quarter but matched the year-ago level. Combined with a reduction in capital expenditure, free cash flow and its margin strengthened both sequentially and year over year.
- Compared with the prior quarter, revenue was stable while free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher, capital expenditure was lower, and free cash flow and its margin were stronger.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$729.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$543.0M
Capital spending and related asset purchases.
FCF margin
20.9%
The share of revenue converted into free cash flow.
TTM FCF yield
2.1%
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 | $3.6B | $635.0M | $776.0M | -$141.0M | -3.9% |
| 2025-09-30 | $3.6B | $1.3B | $730.0M | $607.0M | 16.9% |
| 2025-12-31 | $3.5B | $1.4B | $677.0M | $709.0M | 20.2% |
| 2026-03-31 | $3.5B | $1.3B | $543.0M | $729.0M | 20.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 90.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 15.6% | 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.
Lower Capital Expenditure
Capital expenditure decreased from both the prior quarter and the year-ago quarter, including a specific comparison to prior year's rebuilding project. This reduction was the strongest observable driver of the increase in free cash flow.
Free cash flow and free cash flow margin improved versus both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was slightly lower than the prior quarter but matched the year-ago level. Combined with a reduction in capital expenditure, free cash flow and its margin strengthened both sequentially and year over year.
Compared with the prior quarter, revenue was stable while free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher, capital expenditure was lower, and free cash flow and its margin were stronger.
Monitor changes in capital expenditure, as reduced outlays were the key factor in the quarter's free cash flow improvement.
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 | $92.8B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.1% | 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.