Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue in the current quarter was lower than the prior quarter but higher than the same quarter last year. Free cash flow and its margin improved both sequentially and year-over-year, supported by a reduction in capital expenditure.
- Operating cash flow was lower than the prior quarter but higher than the year-ago period. Capital expenditure declined in both comparisons, leading to free cash flow and margin that were higher than both prior periods.
- Sequentially, revenue and operating cash flow declined, while free cash flow and margin improved due to lower capital spending. Year-over-year, all metrics except capital expenditure were higher, with capital expenditure lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$413.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$567.8M
Cash generated by operations before capital spending.
CapEx
$154.7M
Capital spending and related asset purchases.
FCF margin
9.3%
The share of revenue converted into free cash flow.
TTM FCF yield
13.1%
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | $567.8M | Cash generated by operations before capital spending. |
| Capital expenditures | $154.7M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $413.1M | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $3.3B | $512.2M | $135.3M | $377.0M | 11.5% |
| 2022-09-30 | $3.4B | $400.6M | $219.7M | $180.8M | 5.3% |
| 2022-12-31 | $3.6B | $423.2M | $308.5M | $114.7M | 3.2% |
| 2023-03-31 | $3.9B | $704.1M | $139.8M | $564.2M | 14.6% |
| 2023-06-30 | $3.9B | $576.7M | $253.5M | $323.2M | 8.2% |
| 2023-09-30 | $4.0B | $694.1M | $209.8M | $484.3M | 12.2% |
| 2023-12-31 | $4.4B | $715.9M | $328.8M | $387.2M | 8.8% |
| 2024-03-31 | $4.4B | $549.3M | $172.1M | $377.2M | 8.6% |
| 2024-06-30 | $4.3B | $474.2M | $238.2M | $236.0M | 5.5% |
| 2024-09-30 | $4.2B | $667.4M | $336.3M | $331.2M | 7.9% |
| 2024-12-31 | $4.3B | $671.6M | $404.0M | $267.5M | 6.2% |
| 2025-03-31 | $4.3B | $547.1M | $228.0M | $319.0M | 7.5% |
| 2025-06-30 | $4.4B | $645.9M | $268.4M | $377.4M | 8.6% |
| 2025-09-30 | $4.3B | $681.4M | $276.0M | $405.4M | 9.5% |
| 2025-12-31 | $4.6B | $655.0M | $296.5M | $358.5M | 7.8% |
| 2026-03-31 | $4.5B | $567.8M | $154.7M | $413.1M | 9.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 330.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Reduction
Capital expenditure was lower relative to both the prior quarter and the same quarter last year, which helped offset the decline in operating cash flow and boosted free cash flow.
If capital expenditure returns to higher levels, free cash flow may face pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but higher than the year-ago period. Capital expenditure declined in both comparisons, leading to free cash flow and margin that were higher than both prior periods.
Sequentially, revenue and operating cash flow declined, while free cash flow and margin improved due to lower capital spending. Year-over-year, all metrics except capital expenditure were higher, with capital expenditure lower.
Monitor the level of capital expenditure, as its reduction was a key factor in the current quarter's free cash flow improvement.
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 | $11.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | 13.1% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 10.3x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |