Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow moved lower versus the prior quarter but remained well above the year-ago level. Free cash flow margin weakened sequentially yet improved significantly from the same quarter one year earlier.
- Operating cash flow converted into free cash flow after capital expenditure; the free cash flow margin was lower than the prior quarter but higher than the year-ago quarter. Revenue declined sequentially while operating cash flow also decreased, leading to a reduced conversion rate.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow each declined, and free cash flow margin weakened. Versus the same quarter one year earlier, all metrics improved substantially.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$654.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$766.8M
Cash generated by operations before capital spending.
CapEx
$112.6M
Capital spending and related asset purchases.
FCF margin
24.7%
The share of revenue converted into free cash flow.
TTM FCF yield
1.9%
TTM FCF divided by market capitalization.
FCF reconciliation
Free cash flow is not a GAAP line item; it should be bridged from the cash flow statement.
| Operating cash flow | $766.8M | Cash generated by operations before capital spending. |
| Capital expenditures | $112.6M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $654.2M | Operating cash flow less capital spending. |
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $1.4B | -$205.7M | $23.1M | -$228.8M | -16.3% |
| 2022-09-30 | $1.5B | $4.4M | $23.5M | -$19.1M | -1.3% |
| 2022-12-31 | $1.7B | $180.7M | $38.3M | $142.4M | 8.6% |
| 2023-03-31 | $1.5B | $42.0M | $27.8M | $14.2M | 0.9% |
| 2023-06-30 | $1.7B | $253.6M | $25.8M | $227.8M | 13.1% |
| 2023-09-30 | $1.7B | $248.7M | $26.5M | $222.2M | 12.8% |
| 2023-12-31 | $1.9B | $356.2M | $47.8M | $308.4M | 16.5% |
| 2024-03-31 | $1.6B | $137.5M | $35.8M | $101.7M | 6.2% |
| 2024-06-30 | $2.0B | $381.5M | $34.1M | $347.4M | 17.8% |
| 2024-09-30 | $2.1B | $375.1M | $36.4M | $338.7M | 16.3% |
| 2024-12-31 | $2.3B | $425.2M | $60.7M | $364.5M | 15.5% |
| 2025-03-31 | $2.0B | $303.3M | $36.5M | $266.8M | 13.1% |
| 2025-06-30 | $2.6B | $322.9M | $45.0M | $277.9M | 10.5% |
| 2025-09-30 | $2.7B | $508.7M | $45.2M | $463.5M | 17.3% |
| 2025-12-31 | $2.9B | $978.9M | $93.3M | $885.6M | 30.8% |
| 2026-03-31 | $2.6B | $766.8M | $112.6M | $654.2M | 24.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 167.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$771.6M | 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 free cash flow expansion
Free cash flow and its margin were markedly higher than the year-ago quarter, driven by a larger increase in operating cash flow relative to capital expenditure.
This driver underpins the comparative strength of the current quarter’s cash generation versus the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow converted into free cash flow after capital expenditure; the free cash flow margin was lower than the prior quarter but higher than the year-ago quarter. Revenue declined sequentially while operating cash flow also decreased, leading to a reduced conversion rate.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow each declined, and free cash flow margin weakened. Versus the same quarter one year earlier, all metrics improved substantially.
Monitor the trajectory of capital expenditure relative to operating cash flow, as it rose sequentially while operating cash flow fell.
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 | $117.0B | Used as the denominator for FCF yield. |
| TTM FCF yield | 1.9% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 51.6x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.
Risks and tripwires
Observable signals that would weaken the free cash flow thesis.
| Risk | Tripwire | Why it matters |
|---|---|---|
| FCF margin compression | FCF margin falls for two consecutive quarters. | Cash conversion may be weakening before earnings show it. |
| Capital intensity rises | CapEx/revenue moves materially above the recent run rate. | More operating cash flow would be consumed before becoming FCF. |
| Working capital drag | Inventory or receivables grow faster than revenue. | Reported growth may not translate into cash. |