Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow and lower capital expenditure. The free cash flow margin strengthened relative to the previous quarter but was slightly lower than the year-ago margin.
- Revenue was higher than both the prior quarter and the year-ago quarter, and operating cash flow followed a similar pattern, increasing more than revenue. With capital expenditure lower in both comparisons, free cash flow rose, and the free cash flow margin was higher than the prior quarter but slightly lower than a year ago.
- Compared to the immediately preceding quarter, all key metrics improved: revenue, operating cash flow, free cash flow, and margin were higher, while capital expenditure was lower. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, capital expenditure was lower, and the free cash flow margin was slightly weaker.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$584.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$605.0M
Cash generated by operations before capital spending.
CapEx
$20.6M
Capital spending and related asset purchases.
FCF margin
24.8%
The share of revenue converted into free cash flow.
TTM FCF yield
2.1%
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 | $2.1B | $466.0M | $31.4M | $434.6M | 20.6% |
| 2025-09-30 | $2.2B | $745.1M | $43.6M | $701.5M | 31.9% |
| 2025-12-31 | $2.1B | $379.4M | $28.2M | $351.2M | 16.5% |
| 2026-03-31 | $2.4B | $605.0M | $20.6M | $584.4M | 24.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 102.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | 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 higher than both the prior quarter and the year-ago quarter. Capital expenditure was lower in both comparisons. These factors combined to lift free cash flow above the levels of both periods.
The improved free cash flow supported a stronger margin relative to the prior quarter, while the margin was slightly below the year-ago level due to proportionally higher revenue growth.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter, and operating cash flow followed a similar pattern, increasing more than revenue. With capital expenditure lower in both comparisons, free cash flow rose, and the free cash flow margin was higher than the prior quarter but slightly lower than a year ago.
Compared to the immediately preceding quarter, all key metrics improved: revenue, operating cash flow, free cash flow, and margin were higher, while capital expenditure was lower. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, capital expenditure was lower, and the free cash flow margin was slightly weaker.
Monitor the portion of cash and cash equivalents held by foreign subsidiaries, as disclosed in the filing, which may affect liquidity and repatriation considerations.
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 | $96.4B | Used as the denominator for FCF yield. |
| TTM FCF yield | 2.1% | 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.