Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose compared with both the prior quarter and the same quarter last year, while operating cash flow held steady versus the prior quarter and increased year over year. Lower capital expenditure drove free cash flow higher, though the free cash flow margin was slightly below the prior quarter's level.
- Revenue growth combined with stable operating cash flow and a sharp reduction in capital expenditure resulted in higher free cash flow. The free cash flow margin, while lower than the prior quarter, was well above the year-ago figure.
- Compared with the prior quarter, revenue was higher and capital expenditure was lower, leading to an increase in free cash flow despite a slight decline in margin. Year over year, all metrics improved: revenue, operating cash flow, free cash flow, and margin were all higher, with capital expenditure also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$64.0M
Capital spending and related asset purchases.
FCF margin
34.4%
The share of revenue converted into free cash flow.
TTM FCF yield
5.9%
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 | $1.3B | Cash generated by operations before capital spending. |
| Capital expenditures | $64.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $1.3B | 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 | $2.4B | $969.0M | $34.0M | $935.0M | 38.7% |
| 2022-09-30 | $2.4B | $737.0M | $55.0M | $682.0M | 28.6% |
| 2022-12-31 | $2.4B | $1.1B | $100.0M | $992.0M | 41.7% |
| 2023-03-31 | $2.5B | $653.0M | $21.0M | $632.0M | 25.6% |
| 2023-06-30 | $2.3B | $1.2B | $40.0M | $1.1B | 47.6% |
| 2023-09-30 | $2.4B | $768.0M | $43.0M | $725.0M | 29.8% |
| 2023-12-31 | $2.7B | $969.0M | $86.0M | $883.0M | 33.1% |
| 2024-03-31 | $2.8B | $1.0B | $58.0M | $951.0M | 34.0% |
| 2024-06-30 | $2.9B | $1.2B | $75.0M | $1.1B | 38.7% |
| 2024-09-30 | $3.0B | $898.0M | $79.0M | $819.0M | 27.0% |
| 2024-12-31 | $3.0B | $1.5B | $194.0M | $1.3B | 43.3% |
| 2025-03-31 | $3.2B | $966.0M | $85.0M | $881.0M | 27.3% |
| 2025-06-30 | $3.3B | $1.5B | $60.0M | $1.4B | 44.3% |
| 2025-09-30 | $3.0B | $915.0M | $62.0M | $853.0M | 28.4% |
| 2025-12-31 | $3.1B | $1.3B | $166.0M | $1.1B | 35.3% |
| 2026-03-31 | $3.7B | $1.3B | $64.0M | $1.3B | 34.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 89.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$19.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Reduction
Capital expenditure was significantly lower than both the prior quarter and the same quarter last year, which directly boosted free cash flow despite operating cash flow being stable.
The lower capital spending supported a meaningful increase in free cash flow relative to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue growth combined with stable operating cash flow and a sharp reduction in capital expenditure resulted in higher free cash flow. The free cash flow margin, while lower than the prior quarter, was well above the year-ago figure.
Compared with the prior quarter, revenue was higher and capital expenditure was lower, leading to an increase in free cash flow despite a slight decline in margin. Year over year, all metrics improved: revenue, operating cash flow, free cash flow, and margin were all higher, with capital expenditure also lower.
Monitor the free cash flow margin trend, as it declined modestly from the prior quarter even though revenue increased.
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 | $79.1B | Used as the denominator for FCF yield. |
| TTM FCF yield | 5.9% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 21.1x | 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. |