Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Current quarter free cash flow margin improved significantly compared with both the prior quarter and the same quarter one year earlier, driven by a substantial increase in operating cash flow despite a slight decline in revenue. The cash conversion profile strengthened markedly.
- Revenue conversion into cash was robust, with operating cash flow representing a high proportion of revenue, and capital expenditure remaining moderate, resulting in a strong free cash flow margin.
- Revenue was slightly lower than the prior quarter but higher than the year-ago quarter. Operating cash flow and free cash flow were substantially higher than both comparison periods, and the free cash flow margin improved against both.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$962.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$347.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$365.9M
Cash generated by operations before capital spending.
CapEx
$18.3M
Capital spending and related asset purchases.
FCF margin
42.8%
The share of revenue converted into free cash flow.
TTM FCF yield
4.0%
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 | $780.4M | $282.2M | $8.5M | $273.7M | 35.1% |
| 2025-09-30 | $810.1M | $208.1M | $16.1M | $191.9M | 23.7% |
| 2025-12-31 | $822.5M | $159.2M | $9.7M | $149.5M | 18.2% |
| 2026-03-31 | $811.7M | $365.9M | $18.3M | $347.6M | 42.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 235.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | 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.
Strong Operating Cash Flow
Operating cash flow increased sharply compared with both the prior quarter and the year-ago quarter, even as revenue edged lower sequentially. According to management's discussion in the filing, the increase in operating cash flow primarily reflected business growth and higher collections.
This improvement in operating cash flow drove the notable expansion of free cash flow and free cash flow margin, providing enhanced financial flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue conversion into cash was robust, with operating cash flow representing a high proportion of revenue, and capital expenditure remaining moderate, resulting in a strong free cash flow margin.
Revenue was slightly lower than the prior quarter but higher than the year-ago quarter. Operating cash flow and free cash flow were substantially higher than both comparison periods, and the free cash flow margin improved against both.
Monitor the trajectory of revenue, as continued growth would further support the sustainability of the strong 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 | $23.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | 4.0% | 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.