Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow drove a notable improvement in free cash flow this quarter, while capital expenditure increased. The free cash flow margin strengthened compared to the preceding quarter and held roughly steady from a year earlier.
- Revenue provided a base for higher operating cash flow, which after a larger capital expenditure still yielded improved free cash flow. The conversion from operating cash flow to free cash flow was stronger than the prior quarter.
- Compared with the immediately preceding quarter, free cash flow and operating cash flow were both substantially higher, and capital expenditure also rose. Versus the same quarter one year earlier, free cash flow was slightly higher, operating cash flow increased, and capital expenditure was moderately above the prior-year level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$35.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$112.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$290.0M
Cash generated by operations before capital spending.
CapEx
$178.0M
Capital spending and related asset purchases.
FCF margin
2.2%
The share of revenue converted into free cash flow.
TTM FCF yield
0.1%
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 |
|---|---|---|---|---|---|
| 2024-06-30 | $4.8B | -$119.0M | $64.0M | -$183.0M | -3.8% |
| 2025-03-31 | $4.8B | $250.0M | $152.0M | $98.0M | 2.1% |
| 2025-06-30 | $5.0B | $94.0M | $86.0M | $8.0M | 0.2% |
| 2026-03-31 | $5.1B | $290.0M | $178.0M | $112.0M | 2.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 28.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.9B | 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 Strength
Operating cash flow rose considerably from both the prior quarter and the year-ago period, providing the main lift to free cash flow despite higher capital spending. This was the strongest observable factor behind the quarter's cash generation.
The higher operating cash flow directly improved free cash flow and the free cash flow margin relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue provided a base for higher operating cash flow, which after a larger capital expenditure still yielded improved free cash flow. The conversion from operating cash flow to free cash flow was stronger than the prior quarter.
Compared with the immediately preceding quarter, free cash flow and operating cash flow were both substantially higher, and capital expenditure also rose. Versus the same quarter one year earlier, free cash flow was slightly higher, operating cash flow increased, and capital expenditure was moderately above the prior-year level.
Monitor the trajectory of capital expenditure relative to operating cash flow, as a sustained increase in investment could affect future 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 | $28.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | 0.1% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 1045.3x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.