Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly versus the same quarter last year, though it weakened from the preceding quarter. Revenue remained stable sequentially, while operating cash flow and free cash flow margin declined from the prior period.
- Revenue was consistent with the prior quarter, but operating cash flow fell, leading to lower free cash flow and a narrower free cash flow margin. Capital expenditure also decreased, partially offsetting the drop in operating cash flow.
- Compared to the previous quarter, free cash flow and margin both weakened, driven by lower operating cash flow. Year over year, all cash flow measures improved markedly, with free cash flow and margin much higher than the same period last year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$330.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$89.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$119.3M
Cash generated by operations before capital spending.
CapEx
$29.4M
Capital spending and related asset purchases.
FCF margin
8.5%
The share of revenue converted into free cash flow.
TTM FCF yield
2.5%
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 | $119.3M | Cash generated by operations before capital spending. |
| Capital expenditures | $29.4M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $89.9M | 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 | $1.3B | $23.8M | $18.3M | $5.5M | 0.4% |
| 2022-09-30 | $1.1B | -$56.0M | $18.3M | -$74.4M | -6.8% |
| 2022-12-31 | $1.0B | $100.9M | $21.4M | $79.5M | 7.6% |
| 2023-03-31 | $887.9M | -$18.6M | $24.0M | -$42.5M | -4.8% |
| 2023-06-30 | $1.0B | $83.1M | $29.9M | $53.2M | 5.3% |
| 2023-09-30 | $1.1B | $140.1M | $23.8M | $116.3M | 10.9% |
| 2023-12-31 | $1.1B | $316.9M | $51.3M | $265.6M | 25.0% |
| 2024-03-31 | $889.3M | $111.9M | $26.8M | $85.1M | 9.6% |
| 2024-06-30 | $998.2M | $77.7M | $28.0M | $49.7M | 5.0% |
| 2024-09-30 | $1.2B | $212.3M | $28.6M | $183.7M | 15.6% |
| 2024-12-31 | $1.2B | $339.5M | $53.3M | $286.1M | 23.2% |
| 2025-03-31 | $942.1M | $58.2M | $30.9M | $27.2M | 2.9% |
| 2025-06-30 | $1.1B | $72.2M | $57.7M | $14.5M | 1.4% |
| 2025-09-30 | $1.1B | $118.4M | $21.9M | $96.5M | 8.7% |
| 2025-12-31 | $1.1B | $189.3M | $59.3M | $129.9M | 11.9% |
| 2026-03-31 | $1.1B | $119.3M | $29.4M | $89.9M | 8.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 122.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$943.3M | 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 Decline
Operating cash flow decreased from the previous quarter despite stable revenue, representing the strongest observable driver of the sequential weakness in free cash flow.
If operating cash flow does not improve, free cash flow generation will remain constrained relative to the prior quarter's level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was consistent with the prior quarter, but operating cash flow fell, leading to lower free cash flow and a narrower free cash flow margin. Capital expenditure also decreased, partially offsetting the drop in operating cash flow.
Compared to the previous quarter, free cash flow and margin both weakened, driven by lower operating cash flow. Year over year, all cash flow measures improved markedly, with free cash flow and margin much higher than the same period last year.
Monitor whether operating cash flow can recover to the level of the prior quarter, given its decline was the primary factor behind the sequential drop 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 | $13.1B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.5% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 42.4x | 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. |