Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow increased significantly relative to both the prior quarter and the same quarter last year. The free cash flow margin improved dramatically from a year ago but slightly weakened from the immediate prior quarter.
- Cash conversion was robust, with operating cash flow converting strongly into free cash flow due to minimal capital expenditure. The free cash flow margin remained high, reflecting efficient cash generation.
- Compared to the previous quarter, revenue and free cash flow were higher, but the free cash flow margin was slightly lower. Versus the same quarter last year, all metrics improved substantially, with operating cash flow and free cash flow reaching much higher levels.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$900.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$223.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$223.4M
Cash generated by operations before capital spending.
CapEx
$266000
Capital spending and related asset purchases.
FCF margin
32.3%
The share of revenue converted into free cash flow.
TTM FCF yield
3.1%
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 | $536.4M | $286.2M | $1.8M | $284.4M | 53.0% |
| 2025-09-30 | $515.8M | $223.7M | $4.2M | $219.5M | 42.6% |
| 2025-12-31 | $512.0M | $174.1M | $226000 | $173.9M | 34.0% |
| 2026-03-31 | $691.7M | $223.4M | $266000 | $223.1M | 32.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 84.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth Driving Cash Generation
The quarter's revenue increase was the primary observable driver, fueling higher operating cash flow and free cash flow.
The strong revenue performance enabled robust cash generation despite a modest dip in margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion was robust, with operating cash flow converting strongly into free cash flow due to minimal capital expenditure. The free cash flow margin remained high, reflecting efficient cash generation.
Compared to the previous quarter, revenue and free cash flow were higher, but the free cash flow margin was slightly lower. Versus the same quarter last year, all metrics improved substantially, with operating cash flow and free cash flow reaching much higher levels.
Monitor the sustainability of the free cash flow margin as it slightly contracted from the prior quarter.
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 | $28.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.1% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 35.8x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.