Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the year-ago period, driven by higher operating cash flow against relatively stable capital expenditure. The free cash flow margin also strengthened, reflecting better cash conversion from revenue.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased substantially from both comparison periods, while capital expenditure decreased versus the prior quarter and year ago. This combination produced a notably higher free cash flow and a stronger free cash flow margin.
- Compared to the immediately preceding quarter, revenue and capital expenditure both decreased while operating cash flow and free cash flow rose, leading to an improved margin. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, with capital expenditure lower and the margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$609.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$618.0M
Cash generated by operations before capital spending.
CapEx
$9.0M
Capital spending and related asset purchases.
FCF margin
20.7%
The share of revenue converted into free cash flow.
TTM FCF yield
2.9%
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 | $3.1B | $658.0M | $23.0M | $635.0M | 20.2% |
| 2025-09-30 | $3.1B | $816.0M | $29.0M | $787.0M | 25.2% |
| 2025-12-31 | $3.1B | $203.0M | $30.0M | $173.0M | 5.6% |
| 2026-03-31 | $2.9B | $618.0M | $9.0M | $609.0M | 20.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 158.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 was substantially higher than both the prior quarter and the year-ago quarter, serving as the primary factor behind the free cash flow improvement. Capital expenditure was lower in both comparisons, further supporting free cash flow.
The combination of higher operating cash flow and lower capital expenditure drove a meaningfully stronger free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased substantially from both comparison periods, while capital expenditure decreased versus the prior quarter and year ago. This combination produced a notably higher free cash flow and a stronger free cash flow margin.
Compared to the immediately preceding quarter, revenue and capital expenditure both decreased while operating cash flow and free cash flow rose, leading to an improved margin. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, with capital expenditure lower and the margin strengthened.
Monitor the trajectory of capital expenditure, which decreased from both comparison periods and remains a relatively small component of operating 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 | $74.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.9% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.