Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened compared to both the prior quarter and the same quarter last year, driven primarily by lower operating cash flow and a modest increase in capital expenditure. Revenue was higher than a year ago but lower sequentially, indicating a mixed top-line trend.
- Operating cash flow converted into free cash flow after capital expenditure, producing a free cash flow margin that was lower than both the preceding quarter and the year-ago quarter, reflecting reduced cash generation efficiency relative to revenue.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all declined. Versus the same quarter one year earlier, revenue improved while operating cash flow, free cash flow, and margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$163.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$199.7M
Cash generated by operations before capital spending.
CapEx
$36.3M
Capital spending and related asset purchases.
FCF margin
8.8%
The share of revenue converted into free cash flow.
TTM FCF yield
3.8%
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 | $1.9B | $245.7M | $35.3M | $210.4M | 11.1% |
| 2025-09-30 | $2.0B | $354.6M | $29.1M | $325.5M | 16.6% |
| 2025-12-31 | $2.1B | $499.0M | $37.5M | $461.5M | 22.1% |
| 2026-03-31 | $1.8B | $199.7M | $36.3M | $163.4M | 8.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 85.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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 decline
The strongest observable driver of the quarter was a lower operating cash flow compared to both the prior quarter and the year-ago quarter, which directly reduced free cash flow despite only a slight change in capital expenditure.
A lower operating cash flow was the primary factor behind the weakened free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow converted into free cash flow after capital expenditure, producing a free cash flow margin that was lower than both the preceding quarter and the year-ago quarter, reflecting reduced cash generation efficiency relative to revenue.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all declined. Versus the same quarter one year earlier, revenue improved while operating cash flow, free cash flow, and margin weakened.
Monitor the trend in free cash flow margin as it declined from both comparison periods despite higher year-over-year 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 | $30.6B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.8% | 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.