Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the prior quarter but increased from a year earlier. Operating cash flow strengthened substantially, leading to higher free cash flow and an improved margin.
- Cash conversion strengthened as operating cash flow rose faster than revenue, while capital expenditure remained relatively stable. This resulted in a higher free cash flow margin compared to both prior periods.
- Compared to the prior quarter, revenue was lower but operating cash flow and free cash flow were higher, reflecting improved cash generation. Versus the same quarter last year, all metrics improved, with free cash flow margin increasing.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$47.1M
Capital spending and related asset purchases.
FCF margin
55.7%
The share of revenue converted into free cash flow.
TTM FCF yield
2.0%
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 | $1.6B | $451.9M | $167.8M | $284.1M | 17.4% |
| 2025-09-30 | $1.7B | $655.2M | $87.7M | $567.5M | 32.9% |
| 2025-12-31 | $1.9B | $620.2M | $42.8M | $577.4M | 30.3% |
| 2026-03-31 | $1.8B | $1.1B | $47.1M | $1.0B | 55.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 192.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $1.7B | 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 Improvement
Operating cash flow increased markedly compared to both the prior quarter and the same quarter last year, outpacing changes in revenue and capital spending. This was the primary driver of higher free cash flow.
The improvement in operating cash flow directly boosted free cash flow and the margin, strengthening cash conversion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion strengthened as operating cash flow rose faster than revenue, while capital expenditure remained relatively stable. This resulted in a higher free cash flow margin compared to both prior periods.
Compared to the prior quarter, revenue was lower but operating cash flow and free cash flow were higher, reflecting improved cash generation. Versus the same quarter last year, all metrics improved, with free cash flow margin increasing.
Monitor deferred revenue growth, as it is a significant portion of free cash flow and future revenue according to the filing.
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 | $122.8B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.0% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 49.2x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.