Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
For the quarter, the company generated positive free cash flow with a healthy margin, driven by strong operating cash flow relative to capital spending. Revenue was lower than the preceding quarter but higher than the same quarter last year, while operating cash flow improved markedly from the prior quarter.
- Operating cash flow substantially exceeded capital expenditure, resulting in a positive free cash flow and a strong free cash flow margin. The conversion of revenue into free cash flow was robust, reflecting efficient cash generation from operations.
- Compared to the prior quarter, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow turned from negative to positive. Versus the same quarter a year ago, revenue was higher, operating cash flow was higher, capital expenditure was higher, and free cash flow was higher.
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
$3.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.8B
Cash generated by operations before capital spending.
CapEx
$1.7B
Capital spending and related asset purchases.
FCF margin
21.4%
The share of revenue converted into free cash flow.
TTM FCF yield
8.2%
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 | $15.2B | $2.2B | $1.3B | $930.0M | 6.1% |
| 2025-09-30 | $15.2B | $1.2B | $1.5B | -$246.0M | -1.6% |
| 2025-12-31 | $15.4B | $1.3B | $1.9B | -$604.0M | -3.9% |
| 2026-03-31 | $14.6B | $4.8B | $1.7B | $3.1B | 21.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 447.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.4% | 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 Improvement
The quarter featured a significant increase in operating cash flow compared to the prior quarter, reversing a negative free cash flow position. This improvement was the primary driver of the shift to positive free cash flow.
The company's ability to generate strong operating cash flow supports its liquidity and capital allocation flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow substantially exceeded capital expenditure, resulting in a positive free cash flow and a strong free cash flow margin. The conversion of revenue into free cash flow was robust, reflecting efficient cash generation from operations.
Compared to the prior quarter, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow turned from negative to positive. Versus the same quarter a year ago, revenue was higher, operating cash flow was higher, capital expenditure was higher, and free cash flow was higher.
Monitor the company's progress in managing its upcoming debt maturities and fixed obligations, given its current liquidity position as described in the filing.
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 | $39.3B | Used as the denominator for FCF yield. |
| TTM FCF yield | 8.2% | 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.