Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned strongly positive from a negative prior quarter, driving free cash flow and margin sharply higher. Revenue remained stable versus both the prior quarter and the same quarter last year.
- With revenue flat, a large swing in operating cash flow converted into a substantial free cash flow and a free cash flow margin above forty percent, versus a negative margin in the prior quarter and a margin above thirty percent a year ago.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all improved significantly from negative to positive. Versus the same quarter last year, all metrics were higher, with revenue slightly higher and operating cash flow, free cash flow, and their margin each showing improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$762.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$824.3M
Cash generated by operations before capital spending.
CapEx
$62.0M
Capital spending and related asset purchases.
FCF margin
41.1%
The share of revenue converted into free cash flow.
TTM FCF yield
6.7%
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | $824.3M | Cash generated by operations before capital spending. |
| Capital expenditures | $62.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $762.3M | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $1.5B | $623.6M | $67.9M | $555.7M | 36.7% |
| 2022-09-30 | $1.6B | $767.6M | $54.4M | $713.2M | 44.9% |
| 2022-12-31 | $1.5B | -$135.2M | $60.4M | -$195.6M | -12.8% |
| 2023-03-31 | $1.5B | $511.7M | $60.7M | $451.0M | 29.3% |
| 2023-06-30 | $1.6B | $394.8M | $71.7M | $323.1M | 20.1% |
| 2023-09-30 | $1.7B | $470.0M | $93.6M | $376.4M | 22.5% |
| 2023-12-31 | $1.6B | -$157.4M | $81.9M | -$239.3M | -14.6% |
| 2024-03-31 | $1.8B | $637.3M | $102.5M | $534.8M | 30.6% |
| 2024-06-30 | $1.7B | $677.7M | $103.3M | $574.4M | 33.1% |
| 2024-09-30 | $1.8B | $652.5M | $104.6M | $547.9M | 30.7% |
| 2024-12-31 | $1.8B | -$281.9M | $113.0M | -$394.9M | -21.6% |
| 2025-03-31 | $1.8B | $632.9M | $82.0M | $550.9M | 31.2% |
| 2025-06-30 | $1.7B | $529.9M | $62.2M | $467.7M | 27.1% |
| 2025-09-30 | $1.9B | $609.3M | $63.3M | $546.0M | 28.8% |
| 2025-12-31 | $1.9B | -$18.7M | $66.7M | -$85.4M | -4.4% |
| 2026-03-31 | $1.9B | $824.3M | $62.0M | $762.3M | 41.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 153.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | 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 Reversal
The most observable driver was the swing in operating cash flow from negative in the prior quarter to positive in the current quarter, which directly caused free cash flow and margin to rise sharply. Revenue and capital expenditure remained relatively stable.
Free cash flow and margin benefited entirely from the recovery in operating cash flow, not from changes in revenue or capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue flat, a large swing in operating cash flow converted into a substantial free cash flow and a free cash flow margin above forty percent, versus a negative margin in the prior quarter and a margin above thirty percent a year ago.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all improved significantly from negative to positive. Versus the same quarter last year, all metrics were higher, with revenue slightly higher and operating cash flow, free cash flow, and their margin each showing improvement.
Monitor whether the strong operating cash flow can be sustained after the prior quarter’s negative outlier.
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 | $25.4B | Used as the denominator for FCF yield. |
| TTM FCF yield | 6.7% | 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.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |