Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were lower than the prior quarter but higher than the same quarter last year. Free cash flow margin weakened compared to both the prior quarter and the year-ago quarter.
- Operating cash flow as a proportion of revenue was lower than the prior quarter and the year-ago quarter. Capital expenditure was stable relative to revenue, resulting in a free cash flow margin that was slightly lower than the prior quarter and notably lower than the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, while the free cash flow margin was slightly lower. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, but free cash flow was higher and the free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$848.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$230.6M
Capital spending and related asset purchases.
FCF margin
23.5%
The share of revenue converted into free cash flow.
TTM FCF yield
6.6%
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 | $3.7B | $1.1B | $219.0M | $925.4M | 25.2% |
| 2025-09-30 | $3.8B | $1.6B | $201.4M | $1.4B | 37.8% |
| 2025-12-31 | $3.9B | $1.2B | $248.7M | $922.0M | 23.7% |
| 2026-03-31 | $3.6B | $1.1B | $230.6M | $848.3M | 23.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 116.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.4% | 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.
Revenue and cash flow divergence
Revenue was higher year over year, yet the free cash flow margin was lower. This divergence is the strongest observable pattern, as operating cash flow did not keep pace with revenue growth relative to the year-ago period.
The lower free cash flow margin indicates that cash conversion efficiency weakened compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the prior quarter and the year-ago quarter. Capital expenditure was stable relative to revenue, resulting in a free cash flow margin that was slightly lower than the prior quarter and notably lower than the year-ago quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, while the free cash flow margin was slightly lower. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, but free cash flow was higher and the free cash flow margin was lower.
Monitor the trend in free cash flow margin, which declined relative to both the prior quarter and the year-ago 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 | $62.4B | Used as the denominator for FCF yield. |
| TTM FCF yield | 6.6% | 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.