Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply versus the prior quarter, driven by a significant increase in operating cash flow. Compared to the same quarter last year, free cash flow and margin also strengthened, though capital expenditure was higher.
- Revenue was slightly lower than the prior quarter, but operating cash flow rose substantially, leading to a much higher free cash flow and margin. Capital expenditure decreased modestly from the prior quarter, supporting the improvement.
- Compared to the prior quarter, free cash flow and margin improved markedly, while revenue was slightly lower. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and margin were all higher, despite a larger capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$133.4M
Capital spending and related asset purchases.
FCF margin
43.3%
The share of revenue converted into free cash flow.
TTM FCF yield
3.1%
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 | $3.0B | $1.1B | $145.7M | $927.4M | 31.3% |
| 2025-09-30 | $3.1B | $1.2B | $101.8M | $1.1B | 37.0% |
| 2025-12-31 | $3.2B | $498.0M | $149.4M | $348.6M | 10.9% |
| 2026-03-31 | $3.0B | $1.4B | $133.4M | $1.3B | 43.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 125.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.5% | 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.
Strong operating cash flow
Operating cash flow rose substantially from both the prior quarter and the year-ago quarter, driving the improvement in free cash flow and margin. This was the strongest observable factor in the quarter.
Higher operating cash flow directly lifted free cash flow and margin, despite a slight revenue decline from the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter, but operating cash flow rose substantially, leading to a much higher free cash flow and margin. Capital expenditure decreased modestly from the prior quarter, supporting the improvement.
Compared to the prior quarter, free cash flow and margin improved markedly, while revenue was slightly lower. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and margin were all higher, despite a larger capital expenditure.
Monitor whether the elevated capital expenditure relative to the year-ago quarter persists, as it could temper future free cash flow growth.
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 | $121.1B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.1% | 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.