Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter compared to a negative figure one year earlier, driven by a shift from negative to positive operating cash flow. Revenue was lower than the prior quarter but higher than the same quarter last year, while free cash flow margin improved significantly from a negative level a year ago.
- Operating cash flow of nearly one hundred million dollars funded capital expenditure of over seventeen million dollars, yielding free cash flow of nearly seventy-nine million dollars and a free cash flow margin of seven percent. This represents a conversion from revenue to free cash flow that is positive, contrasting with the negative conversion observed one year earlier.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue was higher, and operating cash flow, free cash flow, and free cash flow margin all improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$78.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$95.8M
Cash generated by operations before capital spending.
CapEx
$17.1M
Capital spending and related asset purchases.
FCF margin
7.0%
The share of revenue converted into free cash flow.
TTM FCF yield
7.4%
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 | $964.5M | $36.1M | $23.9M | $12.2M | 1.3% |
| 2025-09-30 | $1.4B | $8.1M | $22.0M | -$13.9M | -1.0% |
| 2025-12-31 | $2.0B | $1.0B | $21.6M | $1.0B | 52.1% |
| 2026-03-31 | $1.1B | $95.8M | $17.1M | $78.8M | 7.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 58.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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 Turnaround
Operating cash flow shifted from negative seventy-three million dollars one year ago to positive ninety-five point eight million dollars this quarter, directly enabling positive free cash flow. This is the strongest observable driver of the quarter's cash conversion improvement.
The turnaround in operating cash flow was the primary factor that moved free cash flow from negative to positive year over year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of nearly one hundred million dollars funded capital expenditure of over seventeen million dollars, yielding free cash flow of nearly seventy-nine million dollars and a free cash flow margin of seven percent. This represents a conversion from revenue to free cash flow that is positive, contrasting with the negative conversion observed one year earlier.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue was higher, and operating cash flow, free cash flow, and free cash flow margin all improved from negative to positive.
Monitor whether operating cash flow can sustain its positive level in future quarters, given the significant decline from the prior 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 | $14.8B | Used as the denominator for FCF yield. |
| TTM FCF yield | 7.4% | 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.