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 the prior quarter and the year-ago quarter, driven by higher operating cash flow and lower capital expenditure. The free cash flow margin widened significantly compared with both periods.
- Revenue was stable sequentially and slightly higher year over year. Operating cash flow rose relative to both the prior quarter and the year-ago quarter, while capital expenditure decreased versus the prior quarter but was slightly higher than a year ago. The resulting free cash flow and free cash flow margin improved compared with both periods.
- Compared with the immediately preceding quarter, free cash flow was higher and the margin improved, as operating cash flow increased and capital expenditure decreased. Versus the same quarter one year earlier, free cash flow was higher and the margin improved, with operating cash flow higher and capital expenditure slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$751.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$476.0M
Capital spending and related asset purchases.
FCF margin
18.3%
The share of revenue converted into free cash flow.
TTM FCF yield
3.9%
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 | $4.2B | $1.1B | $407.0M | $702.0M | 16.6% |
| 2025-09-30 | $4.2B | $1.2B | $444.0M | $737.0M | 17.5% |
| 2025-12-31 | $4.1B | $981.0M | $577.0M | $404.0M | 9.8% |
| 2026-03-31 | $4.1B | $1.2B | $476.0M | $751.0M | 18.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 143.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.6% | 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 Strength
Operating cash flow was higher than both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow. This occurred even as revenue was stable sequentially and only modestly higher year over year.
The improvement in operating cash flow was the strongest observable driver of the quarter's free cash flow increase.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially and slightly higher year over year. Operating cash flow rose relative to both the prior quarter and the year-ago quarter, while capital expenditure decreased versus the prior quarter but was slightly higher than a year ago. The resulting free cash flow and free cash flow margin improved compared with both periods.
Compared with the immediately preceding quarter, free cash flow was higher and the margin improved, as operating cash flow increased and capital expenditure decreased. Versus the same quarter one year earlier, free cash flow was higher and the margin improved, with operating cash flow higher and capital expenditure slightly higher.
Monitor the trajectory of capital expenditure, which decreased from the prior quarter but remained slightly above the year-ago level.
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 | $66.9B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.9% | 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.