Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly versus both the prior quarter and the same quarter a year ago, driven by a sharp reduction in capital expenditure. Operating cash flow remained elevated, while revenue was stable.
- Revenue was modest, but operating cash flow was materially higher, reflecting strong cash generation from operations. Capital expenditure was very low, resulting in free cash flow that was far above revenue and an extremely high free-cash-flow margin.
- Compared to the prior quarter, free cash flow strengthened markedly as capital expenditure decreased substantially while operating cash flow increased. Versus the same quarter a year earlier, free cash flow also improved, driven by lower capital spending and slightly higher operating cash flow.
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
$477.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$489.9M
Cash generated by operations before capital spending.
CapEx
$12.4M
Capital spending and related asset purchases.
FCF margin
1417.1%
The share of revenue converted into free cash flow.
TTM FCF yield
4.5%
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 | $489.9M | Cash generated by operations before capital spending. |
| Capital expenditures | $12.4M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $477.5M | 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 | $20.5M | $352.9M | $220.9M | $132.0M | 643.3% |
| 2022-09-30 | $22.2M | $307.6M | $639.1M | -$331.5M | -1490.0% |
| 2022-12-31 | $21.2M | $290.1M | $147.3M | $142.8M | 674.1% |
| 2023-03-31 | $21.4M | $281.6M | $13.1M | $268.5M | 1255.8% |
| 2023-06-30 | $22.2M | $347.9M | $32.9M | $315.0M | 1418.5% |
| 2023-09-30 | $28.0M | $408.4M | $18.6M | $389.9M | 1391.4% |
| 2023-12-31 | $30.4M | $364.5M | $71.0M | $293.5M | 966.2% |
| 2024-03-31 | $30.1M | $465.6M | $35.1M | $430.5M | 1427.9% |
| 2024-06-30 | $29.9M | $545.2M | $27.6M | $517.6M | 1733.5% |
| 2024-09-30 | $29.9M | $468.4M | $158.2M | $310.1M | 1037.8% |
| 2024-12-31 | $31.0M | $408.3M | $258.1M | $150.2M | 485.0% |
| 2025-03-31 | $30.9M | $481.4M | $117.1M | $364.3M | 1178.9% |
| 2025-06-30 | $32.0M | $543.9M | $180.7M | $363.2M | 1133.4% |
| 2025-09-30 | $32.5M | $457.1M | $12.9M | $444.2M | 1365.1% |
| 2025-12-31 | $34.0M | $367.8M | $251.0M | $116.8M | 343.6% |
| 2026-03-31 | $33.7M | $489.9M | $12.4M | $477.5M | 1417.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 198.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 36.7% | 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.
Capital expenditure reduction
Capital expenditure declined sharply from both the prior quarter and the year-ago quarter. This reduction was the primary observable driver behind the substantial increase in free cash flow.
Free cash flow rose significantly despite only modest changes in revenue and operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was modest, but operating cash flow was materially higher, reflecting strong cash generation from operations. Capital expenditure was very low, resulting in free cash flow that was far above revenue and an extremely high free-cash-flow margin.
Compared to the prior quarter, free cash flow strengthened markedly as capital expenditure decreased substantially while operating cash flow increased. Versus the same quarter a year earlier, free cash flow also improved, driven by lower capital spending and slightly higher operating cash flow.
Monitor the level of capital expenditure in upcoming quarters, as the current quarter's low spending was a key factor in the elevated 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 | $31.1B | Used as the denominator for FCF yield. |
| TTM FCF yield | 4.5% | 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. |