Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and its margin improved sequentially but declined compared with the same quarter last year. Operating cash flow rose substantially from the preceding quarter, while capital expenditure also increased.
- Operating cash flow exceeded capital expenditure in the current quarter, resulting in positive free cash flow. The free cash flow margin improved from the prior quarter, reflecting stronger cash conversion from revenue, though it remained below the year-ago level.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and capital expenditure increased, leading to an improved free cash flow margin. Relative to the same quarter one year earlier, revenue was higher, but operating cash flow was slightly lower and capital expenditure was higher, resulting in a weakened free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$629.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$179.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$250.3M
Cash generated by operations before capital spending.
CapEx
$70.8M
Capital spending and related asset purchases.
FCF margin
22.3%
The share of revenue converted into free cash flow.
TTM FCF yield
1.0%
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 | $664.6M | $237.6M | $48.1M | $189.5M | 28.5% |
| 2025-09-30 | $737.2M | $239.3M | $42.5M | $196.8M | 26.7% |
| 2025-12-31 | $751.2M | $104.9M | $41.0M | $63.9M | 8.5% |
| 2026-03-31 | $804.2M | $250.3M | $70.8M | $179.4M | 22.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.8% | 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.
Improved Operating Cash Flow
Operating cash flow rose considerably from the prior quarter, driving a higher free cash flow despite the increase in capital expenditure. This sequential improvement was the strongest observable driver in the quarter.
The stronger operating cash flow enhanced the company's cash generation capacity and supported investment in capital assets.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure in the current quarter, resulting in positive free cash flow. The free cash flow margin improved from the prior quarter, reflecting stronger cash conversion from revenue, though it remained below the year-ago level.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and capital expenditure increased, leading to an improved free cash flow margin. Relative to the same quarter one year earlier, revenue was higher, but operating cash flow was slightly lower and capital expenditure was higher, resulting in a weakened free cash flow and margin.
Monitor the trend in capital expenditure, which increased relative to 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 | $65.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | 1.0% | 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.