Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were higher than the prior quarter, while capital expenditure was nearly unchanged, leading to improved free cash flow and margin. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were lower, and the free cash flow margin weakened.
- Revenue of the current quarter, combined with operating cash flow, generated free cash flow after capital expenditure. The resulting free cash flow margin reflects the portion of revenue converted to free cash flow after capital spending.
- Sequentially, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Compared to the same quarter one year earlier, each of these metrics was lower, and the free cash flow margin was weaker.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$816.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.7B
Cash generated by operations before capital spending.
CapEx
$839.0M
Capital spending and related asset purchases.
FCF margin
18.1%
The share of revenue converted into free cash flow.
TTM FCF yield
10.9%
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 | $1.7B | Cash generated by operations before capital spending. |
| Capital expenditures | $839.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $816.0M | 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 |
|---|---|---|---|---|---|
| 2022-06-30 | $5.8B | $2.7B | $573.0M | $2.1B | 36.3% |
| 2022-09-30 | $5.2B | $2.1B | $628.0M | $1.5B | 28.5% |
| 2022-12-31 | $4.4B | $1.9B | $804.0M | $1.1B | 25.4% |
| 2023-03-31 | $3.8B | $1.7B | $1.0B | $665.0M | 17.7% |
| 2023-06-30 | $3.5B | $1.4B | $1.1B | $326.0M | 9.2% |
| 2023-09-30 | $4.0B | $1.7B | $882.0M | $843.0M | 20.9% |
| 2023-12-31 | $3.8B | $1.7B | $910.0M | $827.0M | 21.6% |
| 2024-03-31 | $3.7B | $1.7B | $894.0M | $844.0M | 22.6% |
| 2024-06-30 | $3.9B | $1.5B | $948.0M | $587.0M | 15.1% |
| 2024-09-30 | $3.8B | $1.7B | $877.0M | $786.0M | 20.7% |
| 2024-12-31 | $4.5B | $1.7B | $926.0M | $738.0M | 16.4% |
| 2025-03-31 | $4.5B | $1.9B | $934.0M | $1.0B | 22.2% |
| 2025-06-30 | $4.0B | $1.5B | $956.0M | $589.0M | 14.6% |
| 2025-09-30 | $4.3B | $1.7B | $870.0M | $820.0M | 19.3% |
| 2025-12-31 | $3.9B | $1.5B | $832.0M | $702.0M | 17.8% |
| 2026-03-31 | $4.5B | $1.7B | $839.0M | $816.0M | 18.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 680.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 18.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.6B | 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 Increase
Operating cash flow rose from the prior quarter, and this increase, along with a stable capital expenditure, was the most notable factor in the free cash flow improvement.
The higher operating cash flow directly supported a higher free cash flow and an improved free cash flow margin relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue of the current quarter, combined with operating cash flow, generated free cash flow after capital expenditure. The resulting free cash flow margin reflects the portion of revenue converted to free cash flow after capital spending.
Sequentially, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Compared to the same quarter one year earlier, each of these metrics was lower, and the free cash flow margin was weaker.
The free cash flow margin trend, which improved sequentially but weakened compared to the same quarter one year earlier, warrants attention.
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 | $27.0B | Used as the denominator for FCF yield. |
| TTM FCF yield | 10.9% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 11.5x | 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. |