Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin strengthened sequentially and year-over-year.
- Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased significantly year-over-year, while capital expenditure decreased, resulting in higher free cash flow and an improved free cash flow margin.
- Compared to the immediately preceding quarter, revenue was lower, operating cash flow was lower, and free cash flow was lower, but the free cash flow margin weakened. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, free cash flow was higher, and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$546.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$626.2M
Cash generated by operations before capital spending.
CapEx
$79.7M
Capital spending and related asset purchases.
FCF margin
11.0%
The share of revenue converted into free cash flow.
TTM FCF yield
3.0%
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 | $5.7B | $692.1M | $89.9M | $602.2M | 10.5% |
| 2025-09-30 | $5.7B | $1.0B | $68.4M | $935.6M | 16.3% |
| 2025-12-31 | $5.1B | $1.2B | $105.8M | $1.1B | 20.5% |
| 2026-03-31 | $5.0B | $626.2M | $79.7M | $546.5M | 11.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 93.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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 Growth
Operating cash flow was substantially higher than the same quarter last year, while capital expenditure was lower, leading to a significant increase in free cash flow.
This combination strengthened free cash flow and the free cash flow margin compared to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased significantly year-over-year, while capital expenditure decreased, resulting in higher free cash flow and an improved free cash flow margin.
Compared to the immediately preceding quarter, revenue was lower, operating cash flow was lower, and free cash flow was lower, but the free cash flow margin weakened. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, free cash flow was higher, and the free cash flow margin improved.
Monitor the trend in operating cash flow relative to revenue, as it was lower sequentially despite higher year-over-year 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 | $106.2B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.0% | 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.