Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The current quarter's free cash flow turned strongly positive, supported by a substantial operating cash inflow. Both free cash flow and its margin improved significantly compared to the prior quarter and the same quarter last year.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow was positive and large, leading to a high free cash flow margin after deducting capital expenditure.
- Compared to the immediately preceding quarter, operating cash flow shifted from negative to positive, and free cash flow improved from negative to positive. Versus the same quarter one year earlier, both operating cash flow and free cash flow were higher, and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.3B
Cash generated by operations before capital spending.
CapEx
$309.0M
Capital spending and related asset purchases.
FCF margin
53.5%
The share of revenue converted into free cash flow.
TTM FCF yield
2.9%
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 | $7.0B | $223.5M | $263.4M | -$39.9M | -0.6% |
| 2025-09-30 | $8.5B | -$95.7M | $275.6M | -$371.3M | -4.4% |
| 2025-12-31 | $6.3B | -$53.7M | $351.9M | -$405.6M | -6.4% |
| 2026-03-31 | $3.8B | $2.3B | $309.0M | $2.0B | 53.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -521.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.1% | 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 was significantly higher than both the prior quarter and the year-ago quarter, providing the primary support for free cash flow.
This drove free cash flow to a positive level and a high margin.
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 was positive and large, leading to a high free cash flow margin after deducting capital expenditure.
Compared to the immediately preceding quarter, operating cash flow shifted from negative to positive, and free cash flow improved from negative to positive. Versus the same quarter one year earlier, both operating cash flow and free cash flow were higher, and the free cash flow margin improved.
Monitor the level of capital expenditure relative to operating cash flow, as it remained a meaningful cash use.
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 | $42.5B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.9% | 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.