Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow were lower compared to both the immediate preceding quarter and the same quarter one year earlier, while free cash flow margin weakened. Revenue was higher than both comparison periods.
- Free cash flow was derived from operating cash flow after capital expenditure, resulting in a free cash flow margin that was lower than both the prior quarter and the year-ago quarter. Operating cash flow as a proportion of revenue was lower than both comparison periods.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, while revenue was higher. Compared to the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, with a weakened free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$198.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$274.0M
Cash generated by operations before capital spending.
CapEx
$76.0M
Capital spending and related asset purchases.
FCF margin
3.7%
The share of revenue converted into free cash flow.
TTM FCF yield
12.1%
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 | $5.2B | $398.0M | $67.0M | $331.0M | 6.3% |
| 2025-09-30 | $5.4B | $1.2B | $67.0M | $1.2B | 21.4% |
| 2025-12-31 | $5.3B | $858.0M | $77.0M | $781.0M | 14.6% |
| 2026-03-31 | $5.4B | $274.0M | $76.0M | $198.0M | 3.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 29.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | 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 decline
Operating cash flow was lower than both the prior quarter and the year-ago quarter. The filing indicates the decrease from the year-ago quarter was primarily driven by higher incentive based compensation payments.
The lower operating cash flow directly reduced free cash flow despite stable capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow was derived from operating cash flow after capital expenditure, resulting in a free cash flow margin that was lower than both the prior quarter and the year-ago quarter. Operating cash flow as a proportion of revenue was lower than both comparison periods.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, while revenue was higher. Compared to the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, with a weakened free cash flow margin.
Monitor days sales outstanding, which increased compared to the prior quarter end according to the filing.
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 | $20.4B | Used as the denominator for FCF yield. |
| TTM FCF yield | 12.1% | 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.