Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose versus both the prior quarter and the year-ago period, while free cash flow margin narrowed sharply. Operating cash flow declined significantly, driving free cash flow lower despite steady capital expenditure.
- Revenue was higher, but the conversion into operating cash flow weakened, as operating cash flow fell relative to the prior quarter and the year-ago period. Capital expenditure was unchanged from the prior quarter and higher than a year ago, resulting in lower free cash flow and a narrower free cash flow margin.
- Compared with the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was higher, while operating cash flow, free cash flow, and margin were lower, and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$740.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$56.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$107.0M
Cash generated by operations before capital spending.
CapEx
$51.0M
Capital spending and related asset purchases.
FCF margin
0.9%
The share of revenue converted into free cash flow.
TTM FCF yield
n/a
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 | $4.8B | $29.0M | $31.0M | -$2.0M | -0.0% |
| 2025-09-30 | $5.6B | $345.0M | $38.0M | $307.0M | 5.4% |
| 2025-12-31 | $5.6B | $430.0M | $51.0M | $379.0M | 6.8% |
| 2026-03-31 | $6.4B | $107.0M | $51.0M | $56.0M | 0.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 22.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.7B | 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 Weakening
Operating cash flow dropped markedly from both the prior quarter and the year-ago period, while revenue increased. This decline is the strongest observable driver of the lower free cash flow and margin, as capital expenditure was stable quarter over quarter.
The weakening of operating cash flow directly reduced free cash flow and compressed the free cash flow margin despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, but the conversion into operating cash flow weakened, as operating cash flow fell relative to the prior quarter and the year-ago period. Capital expenditure was unchanged from the prior quarter and higher than a year ago, resulting in lower free cash flow and a narrower free cash flow margin.
Compared with the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was higher, while operating cash flow, free cash flow, and margin were lower, and capital expenditure was higher.
Monitor whether operating cash flow can recover from its sequential decline, as it is the primary factor behind the current quarter's reduced free cash flow.
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 | n/a | Used as the denominator for FCF yield. |
| TTM FCF yield | n/a | 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.