Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive compared to a negative figure one year earlier, supported by higher operating cash flow. The margin improved versus both the prior quarter and the same quarter last year.
- Revenue increased while operating cash flow rose more sharply, leading to a higher free cash flow margin. Capital expenditure also increased, but the growth in operating cash flow more than offset the higher spending.
- Compared to the prior quarter, free cash flow and margin were lower, driven by a decline in operating cash flow and a slight increase in capital expenditure. Versus the same quarter one year earlier, free cash flow improved from negative to positive, with operating cash flow substantially higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$316.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$883.0M
Capital spending and related asset purchases.
FCF margin
6.3%
The share of revenue converted into free cash flow.
TTM FCF yield
3.3%
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 | $3.8B | $572.0M | $690.0M | -$118.0M | -3.1% |
| 2025-09-30 | $4.8B | $1.5B | $458.0M | $1.0B | 21.1% |
| 2025-12-31 | $4.8B | $1.4B | $836.0M | $596.0M | 12.4% |
| 2026-03-31 | $5.0B | $1.2B | $883.0M | $316.0M | 6.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 30.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 17.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$18.5B | 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 Growth
Operating cash flow was substantially higher than both the prior quarter and the same quarter last year, providing the primary support for the positive free cash flow.
The increase in operating cash flow was the strongest observable driver of the improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow rose more sharply, leading to a higher free cash flow margin. Capital expenditure also increased, but the growth in operating cash flow more than offset the higher spending.
Compared to the prior quarter, free cash flow and margin were lower, driven by a decline in operating cash flow and a slight increase in capital expenditure. Versus the same quarter one year earlier, free cash flow improved from negative to positive, with operating cash flow substantially higher.
Monitor the trajectory of capital expenditure relative to operating cash flow, as higher spending in the current quarter partially offset cash generation.
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 | $54.0B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.3% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 40.2x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.