Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow weakened significantly from the preceding quarter, leading to a lower free cash flow margin despite a revenue increase. Compared to the same quarter last year, free cash flow margin was stable as operating cash flow and capital expenditure moved in similar proportions.
- Revenue was higher than both the prior quarter and the year-ago quarter, but operating cash flow was lower than the prior quarter and slightly higher than the year-ago quarter. Capital expenditure decreased compared to both periods, helping free cash flow remain similar to the year-ago level while the free cash flow margin was mixed—weakened versus the prior quarter but stable versus the year-ago quarter.
- Against the preceding quarter, free cash flow was substantially lower and the margin weakened, even as revenue improved. Versus the same quarter one year earlier, free cash flow and margin were essentially stable, with revenue and operating cash flow both higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$27.0M
Capital spending and related asset purchases.
FCF margin
24.2%
The share of revenue converted into free cash flow.
TTM FCF yield
4.2%
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 | $3.8B | $1.4B | $61.0M | $1.4B | 36.9% |
| 2025-09-30 | $3.9B | $1.5B | $45.0M | $1.5B | 37.6% |
| 2025-12-31 | $3.9B | $1.7B | $46.0M | $1.7B | 43.5% |
| 2026-03-31 | $4.2B | $1.0B | $27.0M | $1.0B | 24.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 72.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.5B | 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 fell from the prior quarter while revenue rose, resulting in a lower free cash flow margin. This shift occurred without a corresponding change in capital expenditure, indicating a change in cash conversion efficiency.
The weaker operating cash flow was the primary factor that caused free cash flow to be lower than the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter, but operating cash flow was lower than the prior quarter and slightly higher than the year-ago quarter. Capital expenditure decreased compared to both periods, helping free cash flow remain similar to the year-ago level while the free cash flow margin was mixed—weakened versus the prior quarter but stable versus the year-ago quarter.
Against the preceding quarter, free cash flow was substantially lower and the margin weakened, even as revenue improved. Versus the same quarter one year earlier, free cash flow and margin were essentially stable, with revenue and operating cash flow both higher.
Monitor the level of operating cash flow relative to revenue, as it declined from the prior quarter despite higher revenue.
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 | $131.6B | Used as the denominator for FCF yield. |
| TTM FCF yield | 4.2% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 25.8x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.