Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved significantly from the prior quarter and year-ago quarter, driving a positive free cash flow margin. Capital expenditure was lower than both comparable periods, supporting the cash conversion.
- Revenue was slightly higher than the prior quarter but lower than a year ago. Operating cash flow rose sharply versus both periods, resulting in positive free cash flow and a free cash flow margin that improved from negative levels in both comparisons.
- Compared to the prior quarter, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow turned positive. Relative to the same quarter a year ago, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow also turned positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$232.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$621.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$503.0M
Capital spending and related asset purchases.
FCF margin
6.3%
The share of revenue converted into free cash flow.
TTM FCF yield
-1.1%
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | $1.1B | Cash generated by operations before capital spending. |
| Capital expenditures | $503.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $621.0M | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $11.4B | $1.3B | n/a | n/a | n/a |
| 2023-09-30 | $10.7B | $1.7B | n/a | n/a | n/a |
| 2023-12-31 | $10.6B | $1.7B | n/a | n/a | n/a |
| 2024-03-31 | $10.8B | $464.0M | $714.0M | -$250.0M | -2.3% |
| 2024-06-30 | $10.9B | $836.0M | $723.0M | $113.0M | 1.0% |
| 2024-09-30 | $10.9B | $800.0M | $736.0M | $64.0M | 0.6% |
| 2024-12-31 | $10.4B | $814.0M | $767.0M | $47.0M | 0.5% |
| 2025-03-31 | $10.4B | $91.0M | $685.0M | -$594.0M | -5.7% |
| 2025-06-30 | $10.1B | -$470.0M | $662.0M | -$1.1B | -11.2% |
| 2025-09-30 | $10.0B | $1.1B | $564.0M | $563.0M | 5.6% |
| 2025-12-31 | $9.5B | $284.0M | $568.0M | -$284.0M | -3.0% |
| 2026-03-31 | $9.8B | $1.1B | $503.0M | $621.0M | 6.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -116.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.1% | 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.
Strong Operating Cash Flow
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter. This was the primary observable factor behind the quarter's positive free cash flow.
Higher operating cash flow, combined with lower capital expenditure, drove free cash flow from negative to positive.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter but lower than a year ago. Operating cash flow rose sharply versus both periods, resulting in positive free cash flow and a free cash flow margin that improved from negative levels in both comparisons.
Compared to the prior quarter, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow turned positive. Relative to the same quarter a year ago, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow also turned positive.
Monitor whether the sustained improvement in operating cash flow can be maintained, given its significant increase from both comparative periods.
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 | $21.8B | Used as the denominator for FCF yield. |
| TTM FCF yield | -1.1% | 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.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |