Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Operating cash flow and free cash flow improved sequentially but declined year over year, while the free cash flow margin strengthened versus the prior quarter yet weakened compared to the same quarter last year.
- Operating cash flow as a share of revenue was higher than the prior quarter but lower than the same quarter last year. After deducting capital expenditure, free cash flow margin followed a similar pattern, reflecting a sequential improvement in cash conversion efficiency relative to the prior quarter.
- Compared to the prior quarter, revenue was slightly lower while operating cash flow and free cash flow were higher, leading to an improved free cash flow margin. Versus the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$16.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$4.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.4B
Cash generated by operations before capital spending.
CapEx
$63.0M
Capital spending and related asset purchases.
FCF margin
19.4%
The share of revenue converted into free cash flow.
TTM FCF yield
13.7%
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 | $22.0B | $4.0B | $102.0M | $3.9B | 17.9% |
| 2025-09-30 | $22.5B | $5.2B | $66.0M | $5.1B | 22.8% |
| 2025-12-31 | $22.7B | $3.2B | $121.0M | $3.0B | 13.4% |
| 2026-03-31 | $22.2B | $4.4B | $63.0M | $4.3B | 19.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 152.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | 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 Volatility
Operating cash flow was higher than the prior quarter but lower than the same quarter last year, even though revenue increased year over year. The filing notes that the year-over-year decrease was primarily driven by a large payout of policyholder credits in the current quarter.
This payout reduced operating cash flow and free cash flow relative to the same quarter last year, despite higher revenue and strong underwriting profitability.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was higher than the prior quarter but lower than the same quarter last year. After deducting capital expenditure, free cash flow margin followed a similar pattern, reflecting a sequential improvement in cash conversion efficiency relative to the prior quarter.
Compared to the prior quarter, revenue was slightly lower while operating cash flow and free cash flow were higher, leading to an improved free cash flow margin. Versus the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin.
Monitor the trajectory of operating cash flow relative to revenue, as the year-over-year decline occurred 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 | $119.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | 13.7% | 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.