Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow improved versus the year-ago quarter but was lower than the preceding quarter.
- Operating cash flow was higher than the year-ago quarter but lower than the prior quarter. Capital expenditure was higher than the year-ago quarter and slightly lower than the prior quarter, resulting in free cash flow that improved year-over-year but weakened sequentially.
- Compared to the prior quarter, revenue was higher while operating cash flow and free cash flow were lower, leading to a lower free cash flow margin. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with an improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$687.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$804.0M
Capital spending and related asset purchases.
FCF margin
15.4%
The share of revenue converted into free cash flow.
TTM FCF yield
4.4%
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 | $3.6B | $1.6B | $647.0M | $1.0B | 27.8% |
| 2025-09-30 | $3.7B | $1.4B | $793.0M | $621.0M | 16.7% |
| 2025-12-31 | $4.0B | $1.7B | $820.0M | $872.0M | 21.7% |
| 2026-03-31 | $4.5B | $1.5B | $804.0M | $687.0M | 15.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 70.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 18.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$32.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue was higher than both the prior quarter and the year-ago quarter, providing a larger base for cash generation.
Higher revenue supported improved operating cash flow compared to the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the year-ago quarter but lower than the prior quarter. Capital expenditure was higher than the year-ago quarter and slightly lower than the prior quarter, resulting in free cash flow that improved year-over-year but weakened sequentially.
Compared to the prior quarter, revenue was higher while operating cash flow and free cash flow were lower, leading to a lower free cash flow margin. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with an improved free cash flow margin.
Monitor the trend in capital expenditure relative to operating cash flow, as it directly affects free cash flow 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 | $71.8B | Used as the denominator for FCF yield. |
| TTM FCF yield | 4.4% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 32.6x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.