Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, supported by higher revenue and operating cash flow. The free cash flow margin improved compared to both the prior quarter and the same quarter last year.
- Revenue increased while operating cash flow rose more than proportionally, leading to a higher free cash flow margin. Capital expenditure was stable relative to the prior quarter, allowing the improvement in operating cash flow to flow through to free cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin turned positive from negative. Versus the same quarter one year earlier, revenue and operating cash flow were higher, and free cash flow and its margin were also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$236.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$315.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$1.0B
Capital spending and related asset purchases.
FCF margin
7.0%
The share of revenue converted into free cash flow.
TTM FCF yield
0.8%
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 | $2.8B | $1.1B | $1.0B | $15.3M | 0.5% |
| 2025-09-30 | $3.2B | $1.1B | $1.1B | -$26.3M | -0.8% |
| 2025-12-31 | $3.4B | $916.1M | $983.3M | -$67.3M | -2.0% |
| 2026-03-31 | $4.5B | $1.3B | $1.0B | $315.0M | 7.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 51.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 22.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$29.2B | 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 Growth
Operating cash flow increased from the prior quarter and from the same quarter last year, providing the primary support for the positive free cash flow. This improvement occurred alongside higher revenue.
The stronger operating cash flow was the key factor enabling free cash flow to turn positive this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow rose more than proportionally, leading to a higher free cash flow margin. Capital expenditure was stable relative to the prior quarter, allowing the improvement in operating cash flow to flow through to free cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin turned positive from negative. Versus the same quarter one year earlier, revenue and operating cash flow were higher, and free cash flow and its margin were also higher.
Monitor the level of capital expenditure relative to operating cash flow, as it remains a significant use of cash.
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 | $27.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | 0.8% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 241.4x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.