Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow. Revenue increased and capital expenditure remained stable, resulting in a stronger cash conversion.
- Revenue increased, while operating cash flow rose more sharply, leading to a higher free cash flow and an improved free cash flow margin compared to a year ago. Capital expenditure was relatively steady, supporting the conversion of revenue into cash.
- Compared to the prior quarter, revenue and operating cash flow were higher, capital expenditure was slightly lower, and free cash flow increased, though the free cash flow margin weakened marginally. Versus the same quarter last year, all metrics were higher and the margin improved substantially.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$319.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$378.4M
Cash generated by operations before capital spending.
CapEx
$58.9M
Capital spending and related asset purchases.
FCF margin
14.5%
The share of revenue converted into free cash flow.
TTM FCF yield
2.3%
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 | $378.4M | Cash generated by operations before capital spending. |
| Capital expenditures | $58.9M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $319.5M | 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 | $1.8B | $151.2M | $47.5M | $103.7M | 5.8% |
| 2022-09-30 | $1.8B | $257.9M | $48.0M | $209.9M | 11.6% |
| 2022-12-31 | $1.7B | $301.9M | $42.8M | $259.1M | 15.3% |
| 2023-03-31 | $1.9B | $388.5M | $33.7M | $354.8M | 19.1% |
| 2023-06-30 | $1.9B | $302.1M | $55.9M | $246.2M | 13.1% |
| 2023-09-30 | $1.8B | $388.1M | $46.9M | $341.2M | 18.5% |
| 2023-12-31 | $1.8B | $354.0M | $36.3M | $317.7M | 18.1% |
| 2024-03-31 | $1.9B | $335.6M | $50.8M | $284.8M | 15.0% |
| 2024-06-30 | $1.9B | $258.0M | $56.1M | $201.9M | 10.5% |
| 2024-09-30 | $1.9B | $296.9M | $59.4M | $237.5M | 12.4% |
| 2024-12-31 | $1.8B | $282.8M | $60.2M | $222.6M | 12.2% |
| 2025-03-31 | $2.0B | $262.2M | $55.7M | $206.5M | 10.5% |
| 2025-06-30 | $2.1B | $278.6M | $69.3M | $209.3M | 10.1% |
| 2025-09-30 | $2.1B | $386.9M | $60.3M | $326.6M | 15.3% |
| 2025-12-31 | $2.0B | $368.1M | $60.0M | $308.1M | 15.2% |
| 2026-03-31 | $2.2B | $378.4M | $58.9M | $319.5M | 14.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 94.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | $183.6M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Inventory Optimization
The increase in operating cash flow was primarily attributed to a focused effort to optimize inventory levels, as noted in the filing.
This inventory focus drove the significant year-over-year improvement in free cash flow.
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 sharply, leading to a higher free cash flow and an improved free cash flow margin compared to a year ago. Capital expenditure was relatively steady, supporting the conversion of revenue into cash.
Compared to the prior quarter, revenue and operating cash flow were higher, capital expenditure was slightly lower, and free cash flow increased, though the free cash flow margin weakened marginally. Versus the same quarter last year, all metrics were higher and the margin improved substantially.
Monitor inventory levels, as the filing cited a focused effort to optimize inventory as a key factor supporting operating 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 | $51.5B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.3% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 44.1x | 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. |