Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive with an improved margin compared to the same quarter one year earlier, driven by a shift in operating cash flow from negative to positive. However, relative to the immediate prior quarter, free cash flow decreased as capital expenditure rose while operating cash flow was lower.
- Operating cash flow more than covered capital expenditure, resulting in positive free cash flow and a positive margin. The conversion of revenue into operating cash flow strengthened markedly from a year ago, when operating cash flow was negative.
- Compared with the preceding quarter, revenue was higher but free cash flow was lower, reflecting increased capital spending and slightly lower operating cash flow. Versus the same quarter a year earlier, all cash flow measures improved, with operating cash flow and free cash flow shifting from negative to positive.
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
$241.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$388.8M
Cash generated by operations before capital spending.
CapEx
$147.5M
Capital spending and related asset purchases.
FCF margin
8.4%
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 | $388.8M | Cash generated by operations before capital spending. |
| Capital expenditures | $147.5M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $241.4M | 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 | $1.0B | $44.6M | $11.0M | $33.5M | 3.3% |
| 2022-09-30 | $1.1B | $61.2M | $14.6M | $46.7M | 4.2% |
| 2022-12-31 | $1.1B | $132.0M | $13.6M | $118.4M | 10.6% |
| 2023-03-31 | $1.2B | $126.9M | $16.5M | $110.4M | 9.4% |
| 2023-06-30 | $1.3B | $125.4M | $24.6M | $100.8M | 7.8% |
| 2023-09-30 | $1.4B | $214.2M | $28.4M | $185.8M | 13.5% |
| 2023-12-31 | $1.4B | $173.0M | $25.3M | $147.7M | 10.9% |
| 2024-03-31 | $1.5B | $146.6M | $25.0M | $121.6M | 7.9% |
| 2024-06-30 | $1.8B | $189.9M | $23.4M | $166.5M | 9.2% |
| 2024-09-30 | $1.8B | $302.2M | $22.1M | $280.1M | 15.5% |
| 2024-12-31 | $1.9B | $210.5M | $40.7M | $169.8M | 9.1% |
| 2025-03-31 | $1.8B | -$88.0M | $22.2M | -$110.2M | -6.0% |
| 2025-06-30 | $2.2B | $252.5M | $31.3M | $221.2M | 10.2% |
| 2025-09-30 | $2.5B | $553.3M | $35.3M | $517.9M | 21.1% |
| 2025-12-31 | -$4.6B | $468.5M | $66.1M | $402.4M | -8.7% |
| 2026-03-31 | $2.9B | $388.8M | $147.5M | $241.4M | 8.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 65.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | $1.0B | 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 Turnaround
The most significant observable change is the swing in operating cash flow from negative a year ago to positive this quarter, which directly enabled free cash flow generation. This improvement occurred alongside higher revenue.
The return to positive operating cash flow strengthens the company's ability to self-fund capital expenditure and reduces reliance on external financing.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow more than covered capital expenditure, resulting in positive free cash flow and a positive margin. The conversion of revenue into operating cash flow strengthened markedly from a year ago, when operating cash flow was negative.
Compared with the preceding quarter, revenue was higher but free cash flow was lower, reflecting increased capital spending and slightly lower operating cash flow. Versus the same quarter a year earlier, all cash flow measures improved, with operating cash flow and free cash flow shifting from negative to positive.
The trajectory of capital expenditure relative to operating cash flow warrants close monitoring, as its increase contributed to a sequential decline in 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 | $60.5B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.3% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 43.0x | 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. |