Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the preceding quarter and the same quarter a year earlier. Free cash flow margin was slightly lower than the preceding quarter but markedly higher year over year.
- The company generated higher operating cash flow from increased revenue, while capital expenditure also rose. The resulting free cash flow grew in absolute terms despite a modest decline in conversion efficiency relative to the prior quarter.
- Versus the preceding quarter, revenue, operating cash flow, and free cash flow all rose, but free cash flow margin edged lower. Compared to the same quarter a year earlier, all metrics improved substantially, with free cash flow margin showing a clear increase.
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
$844.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$939.0M
Cash generated by operations before capital spending.
CapEx
$95.0M
Capital spending and related asset purchases.
FCF margin
40.6%
The share of revenue converted into free cash flow.
TTM FCF yield
3.1%
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 | $1.9B | $543.0M | $75.0M | $468.0M | 24.7% |
| 2025-09-30 | $2.0B | $743.0M | $85.0M | $658.0M | 32.8% |
| 2025-12-31 | $1.9B | $858.0M | $81.0M | $777.0M | 41.1% |
| 2026-03-31 | $2.1B | $939.0M | $95.0M | $844.0M | 40.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 127.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Operating Cash Flow Growth
Operating cash flow increased compared to both the preceding and year-ago quarters, outpacing the growth in capital expenditure. This was the primary contributor to the absolute rise in free cash flow.
The sustained improvement in operating cash generation supported higher free cash flow despite a slight margin compression.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company generated higher operating cash flow from increased revenue, while capital expenditure also rose. The resulting free cash flow grew in absolute terms despite a modest decline in conversion efficiency relative to the prior quarter.
Versus the preceding quarter, revenue, operating cash flow, and free cash flow all rose, but free cash flow margin edged lower. Compared to the same quarter a year earlier, all metrics improved substantially, with free cash flow margin showing a clear increase.
Monitor the trend in free cash flow margin, as a sequential decline may signal changes in cash conversion efficiency.
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 | $88.2B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.1% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 34.1x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.