Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened sequentially as operating cash flow declined sharply despite revenue remaining stable. Compared to the same quarter last year, free cash flow improved while the margin was nearly unchanged.
- Revenue was flat versus the prior quarter, but operating cash flow fell significantly, resulting in a lower free cash flow and a narrower margin. Capital expenditure rose slightly, adding to the cash conversion pressure.
- Compared to the prior quarter, free cash flow and margin both declined. Relative to the same quarter a year ago, free cash flow was higher and the margin was essentially stable, with operating cash flow improving and capital expenditure rising modestly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$234.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$266.2M
Cash generated by operations before capital spending.
CapEx
$32.0M
Capital spending and related asset purchases.
FCF margin
20.5%
The share of revenue converted into free cash flow.
TTM FCF yield
2.4%
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 | $1.1B | $185.7M | $34.1M | $151.6M | 13.7% |
| 2025-09-30 | $1.1B | $402.3M | $31.1M | $371.2M | 33.6% |
| 2025-12-31 | $1.1B | $355.8M | $29.4M | $326.3M | 29.9% |
| 2026-03-31 | $1.1B | $266.2M | $32.0M | $234.3M | 20.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 84.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$249.3M | 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 fell substantially from the prior quarter even though revenue was unchanged. This was the primary factor behind the weaker free cash flow and margin.
The decline in operating cash flow reduced free cash flow generation despite stable revenue, resulting in a lower cash conversion rate.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was flat versus the prior quarter, but operating cash flow fell significantly, resulting in a lower free cash flow and a narrower margin. Capital expenditure rose slightly, adding to the cash conversion pressure.
Compared to the prior quarter, free cash flow and margin both declined. Relative to the same quarter a year ago, free cash flow was higher and the margin was essentially stable, with operating cash flow improving and capital expenditure rising modestly.
Monitor working capital trends and the level of credit facility borrowings, as the change in working capital was driven by higher borrowings in the current quarter.
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 | $44.6B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.4% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 41.4x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.