Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved versus both prior periods. Free cash flow margin weakened sequentially but improved from a year ago.
- Operating cash flow was lower than the previous quarter but higher than the same quarter last year. With capital expenditure stable, free cash flow followed the same directional pattern, resulting in a free cash flow margin that was lower sequentially yet higher year over year.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, causing a weakened margin. Versus the same quarter one year earlier, all operating cash flow, free cash flow, and margin were higher.
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
$304.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$306.8M
Cash generated by operations before capital spending.
CapEx
$2.8M
Capital spending and related asset purchases.
FCF margin
35.7%
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 | $772.7M | $336.2M | $11.3M | $324.8M | 42.0% |
| 2025-09-30 | $793.4M | $449.4M | $3.9M | $445.5M | 56.2% |
| 2025-12-31 | $822.5M | $501.1M | $12.4M | $488.7M | 59.4% |
| 2026-03-31 | $850.8M | $306.8M | $2.8M | $304.0M | 35.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 74.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue growth with steady capex
Revenue was higher in the current quarter compared with both the prior quarter and the year-ago quarter. Capital expenditure remained at a low level relative to revenue, which supported free cash flow generation.
The combination of top-line improvement and controlled capital spending helped free cash flow margin increase from a year ago.
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 previous quarter but higher than the same quarter last year. With capital expenditure stable, free cash flow followed the same directional pattern, resulting in a free cash flow margin that was lower sequentially yet higher year over year.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, causing a weakened margin. Versus the same quarter one year earlier, all operating cash flow, free cash flow, and margin were higher.
Monitor whether operating cash flow can sustain a higher level relative to revenue, given its decline from the prior quarter despite higher revenue.
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 | $45.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.4% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 33.1x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.