Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved significantly as operating cash flow rose while capital expenditure fell, driving free cash flow higher. Revenue was lower than the prior quarter but higher than the year-ago quarter.
- Revenue was lower than the prior quarter, but operating cash flow was substantially higher, and capital expenditure was lower, resulting in a free cash flow margin that strengthened considerably relative to both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher. Versus the same quarter one year earlier, all metrics improved except capital expenditure, which was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$449.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$525.6M
Cash generated by operations before capital spending.
CapEx
$76.6M
Capital spending and related asset purchases.
FCF margin
37.7%
The share of revenue converted into free cash flow.
TTM FCF yield
5.0%
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 | $1.2B | $303.0M | $94.1M | $208.9M | 18.1% |
| 2025-09-30 | $1.2B | $659.9M | $80.5M | $579.4M | 47.9% |
| 2025-12-31 | $1.3B | $294.0M | $101.9M | $192.1M | 15.3% |
| 2026-03-31 | $1.2B | $525.6M | $76.6M | $449.0M | 37.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 225.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.4% | 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 Increase
Operating cash flow rose substantially compared to both the prior quarter and the year-ago quarter, even as revenue declined from the prior quarter. This increase was the primary observable factor behind the improvement in free cash flow.
The higher operating cash flow enabled free cash flow to expand even as capital expenditure declined, leading to a stronger free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, but operating cash flow was substantially higher, and capital expenditure was lower, resulting in a free cash flow margin that strengthened considerably relative to both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher. Versus the same quarter one year earlier, all metrics improved except capital expenditure, which was lower.
Monitor the level of capital expenditure relative to operating cash flow, as a lower capex contributed to the free cash flow improvement.
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 | $28.6B | Used as the denominator for FCF yield. |
| TTM FCF yield | 5.0% | 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.