Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The current quarter's free cash flow improved significantly from the prior quarter and was higher than the same quarter last year, with the free cash flow margin remaining stable year over year.
- Revenue growth supported higher operating cash flow, while capital expenditure increased. This resulted in a stronger free cash flow compared to both the prior quarter and the year-ago period.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter last year, operating cash flow was higher and free cash flow rose, though the margin was nearly unchanged.
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
$569.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$739.0M
Cash generated by operations before capital spending.
CapEx
$170.0M
Capital spending and related asset purchases.
FCF margin
12.0%
The share of revenue converted into free cash flow.
TTM FCF yield
2.1%
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 | $4.6B | $377.0M | $175.0M | $202.0M | 4.4% |
| 2025-09-30 | $4.7B | $597.0M | $258.0M | $339.0M | 7.3% |
| 2025-12-31 | $4.4B | $395.0M | $126.0M | $269.0M | 6.1% |
| 2026-03-31 | $4.7B | $739.0M | $170.0M | $569.0M | 12.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 102.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | 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.
Strong Operating Cash Flow
The increase in operating cash flow was the primary driver of free cash flow improvement, supported by higher revenue.
Higher operating cash flow more than offset the increase in capital expenditure, leading to stronger free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue growth supported higher operating cash flow, while capital expenditure increased. This resulted in a stronger free cash flow compared to both the prior quarter and the year-ago period.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter last year, operating cash flow was higher and free cash flow rose, though the margin was nearly unchanged.
Monitor the trend in capital expenditure, as it increased from both the prior quarter and the year-ago period.
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 | $64.5B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.1% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 48.0x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.