Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was slightly higher compared to the same quarter one year earlier, driven by revenue growth, but weakened sharply from the immediately preceding quarter due to lower operating cash flow. The free cash flow margin improved marginally year over year but declined significantly from the prior quarter.
- Revenue was stable versus the prior quarter and higher versus a year ago. Operating cash flow was substantially lower than the prior quarter but slightly higher year over year. Capital expenditure was modestly lower than the prior quarter and higher than a year ago. As a result, free cash flow and its margin weakened markedly from the prior quarter but were slightly improved from a year ago.
- Compared with the immediately preceding quarter, free cash flow and its margin were sharply lower because operating cash flow declined even as revenue stayed flat. Versus the same quarter one year earlier, free cash flow and its margin were slightly higher due to a combination of increased revenue and a larger increase in operating cash flow relative to capital expenditure.
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
$121.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$241.9M
Cash generated by operations before capital spending.
CapEx
$120.4M
Capital spending and related asset purchases.
FCF margin
7.4%
The share of revenue converted into free cash flow.
TTM FCF yield
5.7%
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 | $1.5B | $361.1M | $122.2M | $238.9M | 15.5% |
| 2025-09-30 | $1.5B | $559.9M | $122.0M | $437.9M | 28.3% |
| 2025-12-31 | $1.6B | $470.8M | $130.0M | $340.8M | 22.0% |
| 2026-03-31 | $1.6B | $241.9M | $120.4M | $121.5M | 7.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 70.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.1B | 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
Revenue remained stable quarter over quarter, but operating cash flow fell substantially, reducing free cash flow and margin. This decline is the most significant observable change in the current quarter.
The lower operating cash flow wholly accounts for the weakened cash conversion in the current quarter compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior quarter and higher versus a year ago. Operating cash flow was substantially lower than the prior quarter but slightly higher year over year. Capital expenditure was modestly lower than the prior quarter and higher than a year ago. As a result, free cash flow and its margin weakened markedly from the prior quarter but were slightly improved from a year ago.
Compared with the immediately preceding quarter, free cash flow and its margin were sharply lower because operating cash flow declined even as revenue stayed flat. Versus the same quarter one year earlier, free cash flow and its margin were slightly higher due to a combination of increased revenue and a larger increase in operating cash flow relative to capital expenditure.
Monitor the sustainability of the lower operating cash flow level relative to revenue, as it drove the sharp sequential decline in free cash flow.
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 | $19.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | 5.7% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 21.9x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.