Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's free cash flow margin weakened compared to both the prior quarter and the same quarter last year, as operating cash flow fell sequentially while revenue remained flat. Despite a year-over-year increase in free cash flow, the margin contracted due to a larger revenue base.
- Revenue was stable sequentially, but operating cash flow decreased, leading to a lower free cash flow margin. Capital expenditure also declined, partially offsetting the cash flow drop.
- Compared to the prior quarter, free cash flow and margin were lower, driven by a reduction in operating cash flow. Year-over-year, free cash flow was higher, but the margin was lower due to revenue growth outpacing cash flow growth.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$625.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$833.4M
Cash generated by operations before capital spending.
CapEx
$208.4M
Capital spending and related asset purchases.
FCF margin
35.6%
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 | $1.5B | $1.2B | $244.0M | $971.3M | 64.8% |
| 2025-09-30 | $1.6B | $890.3M | $205.2M | $685.0M | 42.8% |
| 2025-12-31 | $1.8B | $1.2B | $254.9M | $948.8M | 53.0% |
| 2026-03-31 | $1.8B | $833.4M | $208.4M | $625.0M | 35.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 109.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$27.7B | 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 Decline
Operating cash flow decreased from the prior quarter despite stable revenue, indicating a weaker cash conversion rate.
This decline was the primary factor behind the lower free cash flow and margin sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially, but operating cash flow decreased, leading to a lower free cash flow margin. Capital expenditure also declined, partially offsetting the cash flow drop.
Compared to the prior quarter, free cash flow and margin were lower, driven by a reduction in operating cash flow. Year-over-year, free cash flow was higher, but the margin was lower due to revenue growth outpacing cash flow growth.
Monitor distributions from unconsolidated entities, which contributed significantly to liquidity in the 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 | $0 | Used as the denominator for FCF yield. |
| TTM FCF yield | n/a | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 8.6x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.