Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased both sequentially and year-over-year, but free cash flow declined as operating cash flow decreased more than capital expenditure. The filing indicates that net cash provided by operating activities decreased compared to the prior year, and management evaluated disclosure controls as effective with no material changes in internal control over financial reporting.
- Operating cash flow was lower than the increase in revenue, resulting in a reduced free cash flow margin. Capital expenditure also decreased, but not enough to offset the decline in operating cash flow.
- Compared to the immediately preceding quarter, revenue was higher while operating cash flow and free cash flow were lower, causing the margin to weaken. Relative to the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, with a similar weakening in margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$164.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$278.0M
Cash generated by operations before capital spending.
CapEx
$114.0M
Capital spending and related asset purchases.
FCF margin
5.7%
The share of revenue converted into free cash flow.
TTM FCF yield
5.8%
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 | $2.8B | $544.0M | $108.0M | $436.0M | 15.8% |
| 2025-09-30 | $2.8B | $563.0M | $144.0M | $419.0M | 14.9% |
| 2025-12-31 | $2.8B | $465.0M | $158.0M | $307.0M | 10.9% |
| 2026-03-31 | $2.9B | $278.0M | $114.0M | $164.0M | 5.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 65.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | 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
The primary observable factor was a significant decrease in operating cash flow, which fell from the prior quarter and the year-ago period. This reduction outpaced the decline in capital expenditure, leading to a lower free cash flow.
The decline in operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the increase in revenue, resulting in a reduced free cash flow margin. Capital expenditure also decreased, but not enough to offset the decline in operating cash flow.
Compared to the immediately preceding quarter, revenue was higher while operating cash flow and free cash flow were lower, causing the margin to weaken. Relative to the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, with a similar weakening in margin.
Monitor the trajectory of operating cash flow, as it declined from both the prior quarter and the year-ago period.
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 | $22.8B | Used as the denominator for FCF yield. |
| TTM FCF yield | 5.8% | 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.