Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow and free cash flow weakened significantly compared to both periods, resulting in a much lower free cash flow margin.
- Operating cash flow as a proportion of revenue was lower than both the prior quarter and the year-ago quarter. After deducting capital expenditure, free cash flow margin narrowed sharply, reflecting a weaker conversion of revenue into free cash flow.
- Compared to the immediately preceding quarter, revenue was slightly lower while operating cash flow and free cash flow were substantially lower. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, with free cash flow margin declining from both periods.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$155.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$467.0M
Cash generated by operations before capital spending.
CapEx
$312.0M
Capital spending and related asset purchases.
FCF margin
1.5%
The share of revenue converted into free cash flow.
TTM FCF yield
3.4%
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 | $9.0B | $308.0M | $305.0M | $3.0M | 0.0% |
| 2025-09-30 | $9.7B | $717.0M | $299.0M | $418.0M | 4.3% |
| 2025-12-31 | $10.5B | $2.4B | $398.0M | $2.0B | 19.0% |
| 2026-03-31 | $10.1B | $467.0M | $312.0M | $155.0M | 1.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 27.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | 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 Decline
The most observable driver was the sharp reduction in operating cash flow compared to both the prior quarter and the year-ago quarter. This decline was the primary factor behind the lower free cash flow, as capital expenditure was relatively stable.
The lower operating cash flow directly compressed free cash flow and free cash flow margin, despite revenue being higher than 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 as a proportion of revenue was lower than both the prior quarter and the year-ago quarter. After deducting capital expenditure, free cash flow margin narrowed sharply, reflecting a weaker conversion of revenue into free cash flow.
Compared to the immediately preceding quarter, revenue was slightly lower while operating cash flow and free cash flow were substantially lower. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, with free cash flow margin declining from both periods.
Monitor the trajectory of operating cash flow relative to revenue, as the current quarter's conversion weakened markedly from both the prior quarter and the year-ago period.
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 | $75.2B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.4% | 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.