Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was lower sequentially despite stable revenue, as operating cash flow declined and capital spending narrowed. Compared to the same quarter last year, both operating cash flow and free cash flow improved while the margin expanded modestly.
- Revenue was unchanged from the prior quarter, but operating cash flow decreased and capital expenditure was lower, resulting in a lower free cash flow and a weakened free cash flow margin. Compared to the same quarter one year earlier, revenue was higher, operating cash flow improved, and capital expenditure was lower, producing higher free cash flow and an improved margin.
- Sequentially, free cash flow decreased as operating cash flow weakened more than the reduction in capital spending. Year over year, free cash flow increased due to higher operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$912.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$184.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$401.6M
Cash generated by operations before capital spending.
CapEx
$217.2M
Capital spending and related asset purchases.
FCF margin
4.1%
The share of revenue converted into free cash flow.
TTM FCF yield
n/a
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 | $4.3B | $549.0M | $266.0M | $283.0M | 6.6% |
| 2025-09-30 | $4.5B | $380.7M | $228.9M | $151.8M | 3.4% |
| 2025-12-31 | $4.5B | $574.7M | $281.2M | $293.5M | 6.5% |
| 2026-03-31 | $4.5B | $401.6M | $217.2M | $184.5M | 4.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 52.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year cash flow improvement
Compared to the same quarter one year earlier, operating cash flow was higher and capital expenditure was lower, leading to stronger free cash flow and a wider free cash flow margin.
The year-over-year improvement in free cash flow was the strongest observable driver this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter, but operating cash flow decreased and capital expenditure was lower, resulting in a lower free cash flow and a weakened free cash flow margin. Compared to the same quarter one year earlier, revenue was higher, operating cash flow improved, and capital expenditure was lower, producing higher free cash flow and an improved margin.
Sequentially, free cash flow decreased as operating cash flow weakened more than the reduction in capital spending. Year over year, free cash flow increased due to higher operating cash flow and lower capital expenditure.
Monitor whether operating cash flow can sustain its year-over-year improvement after the sequential decline.
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 | n/a | Used as the denominator for FCF yield. |
| TTM FCF yield | n/a | 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.