Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved year-over-year but weakened significantly from the prior quarter. The sequential decline was driven by lower revenue and a substantially reduced operating cash flow.
- The free cash flow margin was higher than a year ago but lower than the preceding quarter. Operating cash flow as a share of revenue improved compared to the same quarter last year, while capital expenditure remained relatively stable.
- Revenue and operating cash flow were lower than the prior quarter, resulting in a weaker free cash flow. Compared with the same quarter last year, operating cash flow and free cash flow were higher despite lower revenue, leading to an improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$134.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$159.8M
Cash generated by operations before capital spending.
CapEx
$25.4M
Capital spending and related asset purchases.
FCF margin
3.9%
The share of revenue converted into free cash flow.
TTM FCF yield
7.4%
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 | $4.4B | $287.5M | $34.5M | $253.0M | 5.7% |
| 2025-09-30 | $4.4B | $678.4M | $27.3M | $651.1M | 14.8% |
| 2025-12-31 | $4.6B | $771.1M | $31.3M | $739.8M | 16.0% |
| 2026-03-31 | $3.4B | $159.8M | $25.4M | $134.4M | 3.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 38.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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.
Sequential Decline in Operating Cash Flow
Operating cash flow was substantially lower than the prior quarter, more than offsetting the slight improvement from the prior year. This decline was the primary factor behind the weakened free cash flow.
Weaker cash generation from operations constrained free cash flow and margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The free cash flow margin was higher than a year ago but lower than the preceding quarter. Operating cash flow as a share of revenue improved compared to the same quarter last year, while capital expenditure remained relatively stable.
Revenue and operating cash flow were lower than the prior quarter, resulting in a weaker free cash flow. Compared with the same quarter last year, operating cash flow and free cash flow were higher despite lower revenue, leading to an improved free cash flow margin.
Monitor the company's cash and equivalents balance and debt-to-capitalization ratio, as both shifted during the quarter.
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 | $23.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | 7.4% | 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.