Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was stable compared to the year-ago quarter as operating cash flow and capital expenditure moved in line. However, it dropped sharply from the prior quarter, driven by a significantly lower operating cash flow.
- Revenue remained stable sequentially but improved versus the same quarter last year. Operating cash flow was steady year-over-year but materially lower than the preceding quarter, resulting in a free cash flow margin that weakened compared to the prior quarter and was similar to the year-ago level.
- Compared with the immediately preceding quarter, revenue was unchanged yet free cash flow and margin were both much lower due to a substantially lower operating cash flow. Versus the same quarter last year, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, but the margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$153.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$199.0M
Cash generated by operations before capital spending.
CapEx
$46.0M
Capital spending and related asset purchases.
FCF margin
5.2%
The share of revenue converted into free cash flow.
TTM FCF yield
3.4%
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 | $199.0M | Cash generated by operations before capital spending. |
| Capital expenditures | $46.0M | Capital spending used to bridge CFO to FCF. |
| Free cash flow | $153.0M | 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 | $2.0B | $263.0M | $30.0M | $233.0M | 11.4% |
| 2022-09-30 | $2.1B | $204.0M | $32.0M | $172.0M | 8.3% |
| 2022-12-31 | $2.3B | $410.0M | $67.0M | $343.0M | 14.9% |
| 2023-03-31 | $2.2B | -$25.0M | $32.0M | -$57.0M | -2.6% |
| 2023-06-30 | $2.4B | $115.0M | $38.0M | $77.0M | 3.2% |
| 2023-09-30 | $2.5B | $425.0M | $39.0M | $386.0M | 15.1% |
| 2023-12-31 | $2.5B | $686.0M | $77.0M | $609.0M | 24.1% |
| 2024-03-31 | $2.5B | $334.0M | $31.0M | $303.0M | 12.1% |
| 2024-06-30 | $2.6B | $235.0M | $46.0M | $189.0M | 7.1% |
| 2024-09-30 | $2.7B | $542.0M | $46.0M | $496.0M | 18.6% |
| 2024-12-31 | $2.6B | $723.0M | $84.0M | $639.0M | 24.7% |
| 2025-03-31 | $2.6B | $191.0M | $44.0M | $147.0M | 5.6% |
| 2025-06-30 | $2.7B | $209.0M | $39.0M | $170.0M | 6.3% |
| 2025-09-30 | $2.9B | $367.0M | $55.0M | $312.0M | 10.8% |
| 2025-12-31 | $3.0B | $992.0M | $122.0M | $870.0M | 29.3% |
| 2026-03-31 | $3.0B | $199.0M | $46.0M | $153.0M | 5.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 42.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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.
Operating Cash Flow Volatility
The sharp drop in operating cash flow from the preceding quarter is the strongest observable driver of the free cash flow decline, as revenue remained flat and capital expenditure was lower. The filing notes that operating cash flow was supported by higher net income but partially offset by increased working capital requirements.
This volatility in operating cash flow directly caused a materially lower free cash flow and margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable sequentially but improved versus the same quarter last year. Operating cash flow was steady year-over-year but materially lower than the preceding quarter, resulting in a free cash flow margin that weakened compared to the prior quarter and was similar to the year-ago level.
Compared with the immediately preceding quarter, revenue was unchanged yet free cash flow and margin were both much lower due to a substantially lower operating cash flow. Versus the same quarter last year, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, but the margin was slightly lower.
Monitor the trend in operating cash flow, which declined significantly from the prior quarter despite stable revenue.
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 | $44.1B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.4% | 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.
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. |