Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's free cash flow improved compared to the same period last year, driven by higher operating cash flow and lower capital spending. However, free cash flow margin decreased sharply from the prior quarter, reflecting a sequential decline in cash conversion.
- Revenue was lower than the previous quarter but higher than a year ago. Operating cash flow and free cash flow followed a similar pattern, while capital expenditure was slightly lower than both comparison periods. The free cash flow margin improved from the prior year but weakened from the prior quarter.
- Compared to the prior quarter, all key metrics — revenue, operating cash flow, free cash flow, and margin — were lower. Compared to the same quarter last year, all metrics were higher.
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
$310.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$412.0M
Cash generated by operations before capital spending.
CapEx
$102.0M
Capital spending and related asset purchases.
FCF margin
8.4%
The share of revenue converted into free cash flow.
TTM FCF yield
n/a
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 | $412.0M | Cash generated by operations before capital spending. |
| Capital expenditures | $102.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $310.0M | 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 | $3.6B | $1.1B | $382.0M | $689.0M | 19.3% |
| 2022-09-30 | $3.9B | -$650.0M | $152.0M | -$802.0M | -20.4% |
| 2022-12-31 | $4.6B | $1.4B | $267.0M | $1.1B | 24.5% |
| 2023-03-31 | $3.8B | $266.0M | $233.0M | $33.0M | 0.9% |
| 2023-06-30 | $3.6B | $714.0M | $351.0M | $363.0M | 10.1% |
| 2023-09-30 | $3.5B | -$408.0M | $295.0M | -$703.0M | -20.0% |
| 2023-12-31 | $4.3B | $1.3B | $232.0M | $1.1B | 26.0% |
| 2024-03-31 | $3.9B | $534.0M | $175.0M | $359.0M | 9.1% |
| 2024-06-30 | $3.9B | $889.0M | $217.0M | $672.0M | 17.4% |
| 2024-09-30 | $3.4B | -$670.0M | $141.0M | -$811.0M | -24.1% |
| 2024-12-31 | $4.0B | $1.1B | $132.0M | $925.0M | 23.1% |
| 2025-03-31 | $3.5B | $284.0M | $122.0M | $162.0M | 4.6% |
| 2025-06-30 | $3.4B | $601.0M | $207.0M | $394.0M | 11.6% |
| 2025-09-30 | $3.5B | -$340.0M | $96.0M | -$436.0M | -12.5% |
| 2025-12-31 | $4.2B | $1.1B | $108.0M | $1.0B | 24.0% |
| 2026-03-31 | $3.7B | $412.0M | $102.0M | $310.0M | 8.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 348.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | 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.
Improved Free Cash Flow Margin
The free cash flow margin increased compared to the same quarter last year, reflecting higher operating cash flow and lower capital expenditure. The sequential decline from the prior quarter's elevated level is notable but does not negate the year-over-year improvement.
This driver supports stronger cash generation relative to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the previous quarter but higher than a year ago. Operating cash flow and free cash flow followed a similar pattern, while capital expenditure was slightly lower than both comparison periods. The free cash flow margin improved from the prior year but weakened from the prior quarter.
Compared to the prior quarter, all key metrics — revenue, operating cash flow, free cash flow, and margin — were lower. Compared to the same quarter last year, all metrics were higher.
Monitor the free cash flow margin, which declined substantially from the prior quarter despite year-over-year 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 | n/a | Used as the denominator for FCF yield. |
| TTM FCF yield | n/a | 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. |