Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were lower than the immediately preceding quarter but higher than the same quarter one year earlier. Free cash flow margin weakened compared to both periods.
- Operating cash flow substantially exceeded capital expenditure, resulting in free cash flow that was slightly lower than operating cash flow. The free cash flow margin reflects the ratio of free cash flow to revenue.
- Compared with the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all lower, and the margin weakened. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was lower, free cash flow was stable, and the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$9.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.4B
Cash generated by operations before capital spending.
CapEx
$65.0M
Capital spending and related asset purchases.
FCF margin
17.3%
The share of revenue converted into free cash flow.
TTM FCF yield
6.5%
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 | $12.7B | $2.6B | $89.0M | $2.5B | 19.6% |
| 2025-09-30 | $13.5B | $2.3B | $98.0M | $2.2B | 16.6% |
| 2025-12-31 | $14.4B | $2.9B | $75.0M | $2.8B | 19.5% |
| 2026-03-31 | $13.2B | $2.4B | $65.0M | $2.3B | 17.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 869.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | 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.
Revenue and Operating Cash Flow Trend
Revenue declined from the prior quarter but grew from a year ago, while operating cash flow followed a similar pattern. The net income contribution to operating cash flow was adjusted by non-cash items including unrealized losses on securities and stock-based compensation.
The combined movement in revenue and operating cash flow was the most notable change in the period, directly influencing free cash flow and margin.
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 free cash flow that was slightly lower than operating cash flow. The free cash flow margin reflects the ratio of free cash flow to revenue.
Compared with the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all lower, and the margin weakened. Versus the same quarter one year earlier, revenue and operating cash flow were higher, capital expenditure was lower, free cash flow was stable, and the margin weakened.
Monitor the decrease in cash from working capital, which was driven by a reduction in accrued expenses and other liabilities, partially offset by higher accrued insurance reserves.
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 | $151.7B | Used as the denominator for FCF yield. |
| TTM FCF yield | 6.5% | 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.
DASH
DoorDash, Inc.
FCF margin
13.3%
FCF yield
n/a
LYFT
Lyft, Inc.
FCF margin
n/a
FCF yield
n/a