Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow margin improved compared to both the prior quarter and the year-ago quarter.
- Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure was lower than both periods. This combination drove free cash flow higher and expanded the free cash flow margin.
- Compared to the prior quarter, revenue was lower but operating cash flow was higher, leading to a higher free cash flow margin. Compared to the same quarter last year, all metrics—revenue, operating cash flow, free cash flow, and margin—were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$808.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$911.9M
Cash generated by operations before capital spending.
CapEx
$103.3M
Capital spending and related asset purchases.
FCF margin
29.2%
The share of revenue converted into free cash flow.
TTM FCF yield
2.0%
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 | $2.4B | $715.4M | $155.3M | $560.1M | 23.0% |
| 2025-09-30 | $2.5B | $841.0M | $105.4M | $735.6M | 29.4% |
| 2025-12-31 | $2.9B | $892.5M | $162.5M | $730.0M | 25.5% |
| 2026-03-31 | $2.8B | $911.9M | $103.3M | $808.6M | 29.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 98.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.7% | 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 increased compared to both the prior quarter and the year-ago quarter, even as revenue declined sequentially. This was the strongest observable driver of free cash flow improvement.
Higher operating cash flow, combined with lower capital expenditure, directly lifted free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure was lower than both periods. This combination drove free cash flow higher and expanded the free cash flow margin.
Compared to the prior quarter, revenue was lower but operating cash flow was higher, leading to a higher free cash flow margin. Compared to the same quarter last year, all metrics—revenue, operating cash flow, free cash flow, and margin—were higher.
Monitor the trend in capital expenditure, which was lower in the current quarter compared to both the prior quarter and the year-ago 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 | $138.5B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.0% | 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.