Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the preceding quarter and the same quarter one year earlier. The free cash flow margin strengthened significantly versus the prior quarter and was broadly stable relative to the prior-year period.
- Operating cash flow was materially higher than capital expenditure, resulting in strong free cash flow. The free cash flow margin indicates a high rate of revenue conversion into free cash flow.
- Compared to the preceding quarter, revenue increased while capital expenditure was slightly lower, leading to a substantially higher free cash flow and an improved margin. Versus the same quarter one year earlier, revenue was higher and operating cash flow improved, though capital expenditure was also higher, resulting in a higher free cash flow with a similar margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.1B
Cash generated by operations before capital spending.
CapEx
$598.5M
Capital spending and related asset purchases.
FCF margin
72.7%
The share of revenue converted into free cash flow.
TTM FCF yield
13.1%
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 | $2.6B | $1.2B | $549.6M | $692.1M | 27.1% |
| 2025-09-30 | $2.0B | $1.0B | $626.4M | $391.3M | 20.0% |
| 2025-12-31 | $2.4B | $1.1B | $612.7M | $512.7M | 21.5% |
| 2026-03-31 | $3.4B | $3.1B | $598.5M | $2.5B | 72.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 165.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.7B | 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 Strength
Operating cash flow increased markedly compared to both the prior quarter and the year-ago quarter, outpacing the rise in capital expenditure.
This was the strongest observable driver of the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was materially higher than capital expenditure, resulting in strong free cash flow. The free cash flow margin indicates a high rate of revenue conversion into free cash flow.
Compared to the preceding quarter, revenue increased while capital expenditure was slightly lower, leading to a substantially higher free cash flow and an improved margin. Versus the same quarter one year earlier, revenue was higher and operating cash flow improved, though capital expenditure was also higher, resulting in a higher free cash flow with a similar margin.
Monitor the trend in capital expenditure relative to operating cash flow, as a persistently higher capital outlay could pressure future free cash flow conversion.
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 | $31.0B | Used as the denominator for FCF yield. |
| TTM FCF yield | 13.1% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 9.1x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.