Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter but lower than the same quarter last year. Free cash flow margin improved year-over-year but weakened sequentially, reflecting changes in operating cash flow and capital expenditure.
- Operating cash flow was higher than the prior year quarter despite lower revenue, leading to improved free cash flow conversion. Sequentially, operating cash flow decreased while revenue held steady, resulting in a lower conversion rate.
- Compared to the immediately preceding quarter, free cash flow and margin were lower due to reduced operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were higher, driven by stronger operating cash flow and lower capital spending.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$824.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$971.8M
Cash generated by operations before capital spending.
CapEx
$147.2M
Capital spending and related asset purchases.
FCF margin
12.2%
The share of revenue converted into free cash flow.
TTM FCF yield
5.8%
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 | $7.5B | $833.4M | $222.1M | $611.3M | 8.1% |
| 2025-09-30 | $6.7B | $1.5B | $165.9M | $1.4B | 20.4% |
| 2025-12-31 | $6.8B | $1.1B | $189.9M | $954.4M | 14.0% |
| 2026-03-31 | $6.8B | $971.8M | $147.2M | $824.6M | 12.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 136.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | 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 increased compared to the prior year quarter, even as revenue declined, indicating better cash generation from operations. The filing notes that operating cash flow was supported by net income and changes in operating assets and liabilities.
This improvement was the strongest observable driver of the higher free cash flow and margin year-over-year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the prior year quarter despite lower revenue, leading to improved free cash flow conversion. Sequentially, operating cash flow decreased while revenue held steady, resulting in a lower conversion rate.
Compared to the immediately preceding quarter, free cash flow and margin were lower due to reduced operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were higher, driven by stronger operating cash flow and lower capital spending.
Monitor the trend in operating cash flow relative to revenue, as it was the primary factor behind the year-over-year improvement in 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 | $64.8B | Used as the denominator for FCF yield. |
| TTM FCF yield | 5.8% | 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.