Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow improved compared to the same quarter one year earlier, while the free cash flow margin was stable. Versus the immediately preceding quarter, all cash flow metrics were lower and the margin weakened.
- Revenue was higher than the prior quarter but lower than the year-ago quarter. Operating cash flow converted into free cash flow after capital expenditure, resulting in a free cash flow margin that was stable year over year but lower sequentially.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow was lower, capital expenditure was lower, free cash flow was lower, and the free cash flow margin weakened. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was slightly lower, free cash flow was higher, and the free cash flow margin was stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$528.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$623.0M
Cash generated by operations before capital spending.
CapEx
$95.0M
Capital spending and related asset purchases.
FCF margin
13.1%
The share of revenue converted into free cash flow.
TTM FCF yield
3.5%
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 | $4.1B | $550.0M | $101.0M | $449.0M | 11.1% |
| 2025-09-30 | $4.1B | $1.0B | $117.0M | $904.0M | 22.3% |
| 2025-12-31 | $4.1B | $963.0M | $105.0M | $858.0M | 21.0% |
| 2026-03-31 | $4.0B | $623.0M | $95.0M | $528.0M | 13.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 68.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.3B | 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 cash flow improvement
Operating cash flow and free cash flow were both higher compared to the same quarter one year earlier, with the free cash flow margin remaining stable. This was the strongest observable driver of the quarter's performance.
The year-over-year increase in free cash flow supported the company's liquidity position as described in the filing.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter but lower than the year-ago quarter. Operating cash flow converted into free cash flow after capital expenditure, resulting in a free cash flow margin that was stable year over year but lower sequentially.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow was lower, capital expenditure was lower, free cash flow was lower, and the free cash flow margin weakened. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was slightly lower, free cash flow was higher, and the free cash flow margin was stable.
Monitor the trend in operating cash flow relative to revenue, as it declined sequentially despite stable year-over-year conversion.
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 | $77.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.5% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 31.4x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.