Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow improved compared to both the prior quarter and the same quarter last year, driven by a combination of operating cash flow and capital expenditure changes. The free cash flow margin also increased relative to both periods.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow followed a similar pattern, while capital expenditure decreased sharply from the prior quarter. This resulted in free cash flow that was higher than both comparison periods, and the free cash flow margin improved.
- Compared to the prior quarter, revenue and operating cash flow were lower, but capital expenditure was significantly lower, leading to higher free cash flow and an improved margin. Compared to the same quarter a year ago, all metrics were higher, and the free cash flow margin also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$415.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$89.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$113.8M
Cash generated by operations before capital spending.
CapEx
$24.3M
Capital spending and related asset purchases.
FCF margin
11.8%
The share of revenue converted into free cash flow.
TTM FCF yield
3.8%
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 | $649.1M | $196.5M | $18.6M | $177.9M | 27.4% |
| 2025-09-30 | $706.3M | $125.7M | $25.6M | $100.1M | 14.2% |
| 2025-12-31 | $783.8M | $183.3M | $135.1M | $48.2M | 6.1% |
| 2026-03-31 | $761.7M | $113.8M | $24.3M | $89.5M | 11.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 98.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | 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.
Capital Expenditure Reduction
Capital expenditure in the current quarter was lower than the prior quarter, while operating cash flow also decreased. The net effect was a higher free cash flow.
This reduction in capital spending was the primary factor behind the sequential improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow followed a similar pattern, while capital expenditure decreased sharply from the prior quarter. This resulted in free cash flow that was higher than both comparison periods, and the free cash flow margin improved.
Compared to the prior quarter, revenue and operating cash flow were lower, but capital expenditure was significantly lower, leading to higher free cash flow and an improved margin. Compared to the same quarter a year ago, all metrics were higher, and the free cash flow margin also improved.
Monitor changes in working capital, particularly the trends in accounts receivable and accrued liabilities, as noted in the filing.
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 | $11.0B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.8% | 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.