Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus the same quarter last year, driven by higher operating cash flow. However, free cash flow weakened sharply from the prior quarter due to a significant decline in operating cash flow.
- Revenue was stable compared to the prior quarter and higher than a year ago. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter, resulting in a free cash flow margin that weakened sequentially but improved year over year.
- Compared to the prior quarter, operating cash flow and free cash flow were substantially lower, and capital expenditure was slightly lower. Compared to the same quarter last year, operating cash flow and free cash flow were higher, while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$909.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$46.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$86.6M
Cash generated by operations before capital spending.
CapEx
$40.6M
Capital spending and related asset purchases.
FCF margin
3.0%
The share of revenue converted into free cash flow.
TTM FCF yield
3.6%
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 | $1.5B | $260.6M | $39.9M | $220.7M | 14.9% |
| 2025-09-30 | $1.5B | $284.3M | $30.5M | $253.8M | 16.9% |
| 2025-12-31 | $1.5B | $447.5M | $58.7M | $388.8M | 26.0% |
| 2026-03-31 | $1.5B | $86.6M | $40.6M | $46.0M | 3.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 25.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year operating cash flow improvement
Operating cash flow was higher than the same quarter last year, supported by higher net income and increased non-cash depreciation and amortization, as noted in the filing.
This drove free cash flow higher compared to the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter and higher than a year ago. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter, resulting in a free cash flow margin that weakened sequentially but improved year over year.
Compared to the prior quarter, operating cash flow and free cash flow were substantially lower, and capital expenditure was slightly lower. Compared to the same quarter last year, operating cash flow and free cash flow were higher, while capital expenditure was higher.
Monitor the level of operating cash flow in the next quarter, as it declined sharply from the prior quarter despite stable revenue.
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 | $25.0B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.6% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 29.8x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.