Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter one year earlier, driven by higher operating cash flow. However, free cash flow and margin weakened sharply from the immediately preceding quarter.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow, while higher year-over-year, declined sequentially, and capital expenditure was slightly lower than both periods. The resulting free cash flow margin narrowed from the prior quarter but widened from the year-ago quarter.
- Compared to the immediately preceding quarter, free cash flow and margin were lower, with operating cash flow also lower. Versus the same quarter one year earlier, free cash flow and margin were higher, supported by stronger operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$165.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$281.0M
Cash generated by operations before capital spending.
CapEx
$116.0M
Capital spending and related asset purchases.
FCF margin
4.1%
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 | $4.2B | $431.0M | $106.0M | $325.0M | 7.8% |
| 2025-09-30 | $4.3B | $639.0M | $112.0M | $527.0M | 12.2% |
| 2025-12-31 | $4.5B | $712.0M | $148.0M | $564.0M | 12.5% |
| 2026-03-31 | $4.0B | $281.0M | $116.0M | $165.0M | 4.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 61.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$24.8B | 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 operating cash flow improvement
Operating cash flow was higher than the same quarter one year earlier, which directly supported a higher free cash flow and margin compared to that period.
This driver was the strongest observable factor lifting free cash flow relative to the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow, while higher year-over-year, declined sequentially, and capital expenditure was slightly lower than both periods. The resulting free cash flow margin narrowed from the prior quarter but widened from the year-ago quarter.
Compared to the immediately preceding quarter, free cash flow and margin were lower, with operating cash flow also lower. Versus the same quarter one year earlier, free cash flow and margin were higher, supported by stronger operating cash flow.
Monitor the trajectory of operating cash flow, as its sequential decline was the primary factor behind the weakened free cash flow margin.
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 | $41.6B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.8% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 42.0x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.