Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was lower than the prior quarter and slightly lower than the same quarter last year, driven by a decline in operating cash flow. Revenue was higher than a year ago but lower than the preceding quarter, while capital expenditure remained relatively stable.
- Operating cash flow as a percentage of revenue weakened compared to both the prior quarter and the year-ago quarter, resulting in a lower free cash flow margin. Capital expenditure was similar to the prior quarter and slightly higher than a year ago, limiting cash conversion.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Versus the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$64.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$241.1M
Cash generated by operations before capital spending.
CapEx
$176.5M
Capital spending and related asset purchases.
FCF margin
3.7%
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 | $2.1B | $341.7M | $102.9M | $238.8M | 11.4% |
| 2025-09-30 | $2.3B | $676.8M | $222.0M | $454.8M | 19.8% |
| 2025-12-31 | $1.9B | $543.0M | $184.8M | $358.2M | 18.7% |
| 2026-03-31 | $1.8B | $241.1M | $176.5M | $64.6M | 3.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 39.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.2B | 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 Weakening
Operating cash flow was lower than both the prior quarter and the same quarter last year, even though revenue was higher year over year. This was the primary factor behind the decline in free cash flow and free cash flow margin.
The lower operating cash flow reduced free cash flow and compressed the free cash flow margin compared to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue weakened compared to both the prior quarter and the year-ago quarter, resulting in a lower free cash flow margin. Capital expenditure was similar to the prior quarter and slightly higher than a year ago, limiting cash conversion.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Versus the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower.
Monitor the trend in operating cash flow, as it declined from both the prior quarter and the year-ago period despite higher revenue year over year.
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 | $37.5B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.0% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 37.4x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.