Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the year-ago quarter, driven by higher operating cash flow. The free cash flow margin strengthened to a level well above the year-ago period.
- Revenue rose compared with the prior quarter, and operating cash flow increased at a faster pace, resulting in a higher free cash flow margin. Capital expenditure remained modest relative to operating cash flow, supporting strong cash conversion.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, all metrics improved substantially, with free cash flow margin rising from a lower level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$891.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$899.2M
Cash generated by operations before capital spending.
CapEx
$7.4M
Capital spending and related asset purchases.
FCF margin
54.6%
The share of revenue converted into free cash flow.
TTM FCF yield
n/a
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 | $1.0B | $539.3M | $7.6M | $531.6M | 53.0% |
| 2025-09-30 | $1.2B | $507.7M | $6.8M | $500.9M | 42.4% |
| 2025-12-31 | $1.4B | $777.3M | $13.3M | $764.0M | 54.3% |
| 2026-03-31 | $1.6B | $899.2M | $7.4M | $891.8M | 54.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 102.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | 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 Growth
Operating cash flow increased significantly from both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow. The company noted positive cash flow from operations for the current period.
Higher operating cash flow directly drove free cash flow higher and expanded the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose compared with the prior quarter, and operating cash flow increased at a faster pace, resulting in a higher free cash flow margin. Capital expenditure remained modest relative to operating cash flow, supporting strong cash conversion.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, all metrics improved substantially, with free cash flow margin rising from a lower level.
Monitor the trend in accounts receivable, which increased from the prior quarter end, as it may affect future operating 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 | n/a | Used as the denominator for FCF yield. |
| TTM FCF yield | n/a | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |