Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive, supported by stronger cash generation from operations despite higher capital spending. The margin improved compared to both the prior quarter and the same quarter a year earlier.
- Operating cash flow exceeded capital expenditure, yielding positive free cash flow. The free cash flow margin widened, reflecting a higher proportion of revenue converted into free cash flow relative to both comparative periods.
- Compared to the immediately preceding quarter, revenue was slightly lower while operating cash flow increased sharply, reversing a negative free cash flow into a positive figure. Versus the same quarter one year earlier, revenue and both operating and free cash flow were higher, with an improved margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$401.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$788.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$630.0M
Capital spending and related asset purchases.
FCF margin
10.9%
The share of revenue converted into free cash flow.
TTM FCF yield
-1.7%
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 | $7.2B | $401.0M | $635.0M | -$234.0M | -3.2% |
| 2025-09-30 | $6.9B | $287.0M | $678.0M | -$391.0M | -5.6% |
| 2025-12-31 | $7.4B | $295.0M | $859.0M | -$564.0M | -7.6% |
| 2026-03-31 | $7.2B | $1.4B | $630.0M | $788.0M | 10.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 347.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.7% | 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.
Operational Cash Generation
Operating cash flow was higher than both the prior quarter and the year-ago quarter, driving the improvement in free cash flow. This was the strongest observable factor in the cash conversion improvement.
Stronger cash from operations turned free cash flow positive and lifted the margin above prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, yielding positive free cash flow. The free cash flow margin widened, reflecting a higher proportion of revenue converted into free cash flow relative to both comparative periods.
Compared to the immediately preceding quarter, revenue was slightly lower while operating cash flow increased sharply, reversing a negative free cash flow into a positive figure. Versus the same quarter one year earlier, revenue and both operating and free cash flow were higher, with an improved margin.
Monitor capital expenditure relative to operating cash flow; although capital spending rose year-over-year, the gap remained favorable.
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 | $24.2B | Used as the denominator for FCF yield. |
| TTM FCF yield | -1.7% | 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.