Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to the same quarter last year, yet operating cash flow declined, resulting in a lower free cash flow margin. Cash conversion weakened relative to both the preceding quarter and the year-ago period.
- Operating cash flow and free cash flow were both lower than the year-ago quarter despite higher revenue, while capital expenditure was slightly lower. The free cash flow margin contracted sharply, indicating a decline in the efficiency of converting revenue into free cash flow.
- Compared with the 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 margin were lower, showing a mixed performance.
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
$348.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$388.3M
Cash generated by operations before capital spending.
CapEx
$39.9M
Capital spending and related asset purchases.
FCF margin
9.9%
The share of revenue converted into free cash flow.
TTM FCF yield
9.2%
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 | $3.6B | $219.7M | $52.9M | $166.8M | 4.7% |
| 2025-09-30 | $3.7B | $744.9M | $86.8M | $658.1M | 17.6% |
| 2025-12-31 | $3.7B | $815.8M | $196.5M | $619.3M | 16.8% |
| 2026-03-31 | $3.5B | $388.3M | $39.9M | $348.4M | 9.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | n/a | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Cash Conversion Efficiency
Revenue was higher than a year ago, but operating cash flow was lower, leading to a significantly lower free cash flow margin. This divergence between revenue and cash generation is the most notable observable driver.
The lower free cash flow margin indicates reduced cash generation per dollar of revenue, which pressures overall liquidity flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow and free cash flow were both lower than the year-ago quarter despite higher revenue, while capital expenditure was slightly lower. The free cash flow margin contracted sharply, indicating a decline in the efficiency of converting revenue into free cash flow.
Compared with the 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 margin were lower, showing a mixed performance.
Monitor the trajectory of operating cash flow relative to revenue, as the decline in conversion efficiency is a key concern.
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 | $19.4B | Used as the denominator for FCF yield. |
| TTM FCF yield | 9.2% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | 17.8x | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.