Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both decreased from the prior quarter but increased compared to the same quarter last year. Free cash flow margin weakened sequentially but also improved year-over-year.
- Operating cash flow as a proportion of revenue was lower than the prior quarter but higher than a year ago. Capital expenditure decreased from the prior quarter and was slightly above the year-ago level, resulting in free cash flow that was lower sequentially and higher year-over-year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and free cash flow margin weakened. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$341.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$416.0M
Cash generated by operations before capital spending.
CapEx
$75.0M
Capital spending and related asset purchases.
FCF margin
16.6%
The share of revenue converted into free cash flow.
TTM FCF yield
3.9%
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 | $1.9B | $446.0M | $71.0M | $375.0M | 19.4% |
| 2025-09-30 | $2.0B | $543.0M | $94.0M | $449.0M | 22.7% |
| 2025-12-31 | $2.5B | $617.0M | $135.0M | $482.0M | 19.2% |
| 2026-03-31 | $2.1B | $416.0M | $75.0M | $341.0M | 16.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 78.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | 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.
Year-over-Year Revenue Growth
Revenue increased compared to the same quarter last year, supported by higher company sales and franchise revenues as shown in the filing. This contributed to a higher operating cash flow and free cash flow year-over-year.
The year-over-year revenue increase was the strongest observable driver of improved free cash flow compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the prior quarter but higher than a year ago. Capital expenditure decreased from the prior quarter and was slightly above the year-ago level, resulting in free cash flow that was lower sequentially and higher year-over-year.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, and free cash flow margin weakened. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved.
Monitor the trend in capital expenditure relative to operating cash flow, as it declined sequentially while operating cash flow also 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 | $42.1B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.9% | 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.