Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow this quarter improved from the prior quarter, supported by higher operating cash flow and lower capital expenditure. Compared with the same quarter one year earlier, free cash flow was slightly higher and the margin remained stable.
- Operating cash flow converted to free cash flow after deducting capital expenditure, producing a margin that improved from the prior quarter and was consistent with the same quarter one year earlier.
- Compared with the prior quarter, operating cash flow increased and capital expenditure decreased, resulting in higher free cash flow and an improved margin. Versus the same quarter one year earlier, operating cash flow was higher, capital expenditure was higher, and free cash flow was slightly higher, with a stable margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$629.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$689.0M
Cash generated by operations before capital spending.
CapEx
$60.0M
Capital spending and related asset purchases.
FCF margin
29.4%
The share of revenue converted into free cash flow.
TTM FCF yield
3.9%
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 | $746.0M | $59.0M | $687.0M | 32.9% |
| 2025-09-30 | $2.0B | $221.0M | $69.0M | $152.0M | 7.8% |
| 2025-12-31 | $2.1B | $625.0M | $89.0M | $536.0M | 25.2% |
| 2026-03-31 | $2.1B | $689.0M | $60.0M | $629.0M | 29.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 121.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.0B | 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 Improvement
Operating cash flow rose compared with both the prior quarter and the same quarter one year earlier, providing the primary support for the increase in free cash flow.
The higher operating cash flow, combined with lower capital expenditure than the prior quarter, drove the improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow converted to free cash flow after deducting capital expenditure, producing a margin that improved from the prior quarter and was consistent with the same quarter one year earlier.
Compared with the prior quarter, operating cash flow increased and capital expenditure decreased, resulting in higher free cash flow and an improved margin. Versus the same quarter one year earlier, operating cash flow was higher, capital expenditure was higher, and free cash flow was slightly higher, with a stable margin.
Monitor capital expenditure levels, as they increased from the prior year period and directly affect free cash flow.
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 | $51.6B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.9% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 29.7x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.