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 and higher than the same quarter last year. Free cash flow increased sequentially but decreased year over year, with the margin improving from the prior quarter while declining from the year-ago period. The company's filing notes that its primary liquidity sources are operating cash flow and borrowing capacity, with capital expenditures listed as a key use.
- Operating cash flow was lower than both the prior quarter and the year-ago quarter. Capital expenditure decreased sharply from the prior quarter but was slightly above the year-ago level, resulting in free cash flow that was higher sequentially but lower year over year.
- Compared to the prior quarter, the free cash flow margin improved as free cash flow rose while revenue remained unchanged. Versus the same quarter last year, the margin weakened because free cash flow declined despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$702.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$164.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$329.3M
Cash generated by operations before capital spending.
CapEx
$164.7M
Capital spending and related asset purchases.
FCF margin
7.0%
The share of revenue converted into free cash flow.
TTM FCF yield
3.5%
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 | $2.2B | $299.6M | $169.7M | $129.9M | 6.0% |
| 2025-09-30 | $2.3B | $472.2M | $192.1M | $280.1M | 12.1% |
| 2025-12-31 | $2.4B | $446.6M | $319.0M | $127.6M | 5.4% |
| 2026-03-31 | $2.4B | $329.3M | $164.7M | $164.6M | 7.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 96.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.0% | 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.
Capital Expenditure Reduction
Free cash flow increased sequentially primarily because capital expenditure was substantially lower than the prior quarter, while operating cash flow also decreased. This relationship drove the improvement in free cash flow margin.
The quarter's free cash flow benefited from a lower capital expenditure, but the sustainability of such spending levels will be important to assess.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than both the prior quarter and the year-ago quarter. Capital expenditure decreased sharply from the prior quarter but was slightly above the year-ago level, resulting in free cash flow that was higher sequentially but lower year over year.
Compared to the prior quarter, the free cash flow margin improved as free cash flow rose while revenue remained unchanged. Versus the same quarter last year, the margin weakened because free cash flow declined despite higher revenue.
Capital expenditure levels, which varied significantly between the current and prior quarter, should be monitored for their impact on free cash flow conversion.
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 | $20.3B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.5% | 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.