Grizzly Bulls
Financial research concept

Cybersecurity Platform Adjusted Free Cash Flow Margin

measures issuer-defined adjusted free cash flow as a percentage of cybersecurity platform revenue.

By Lee BaileyPublished Oct 1, 2026
Research context

See what supports this page, how current it is, and where comparable or historical context is available.

Research date
Oct 1, 2026Use the dated article and cited sources for the definition, examples, and stated limitations.
Operating-model context
10 connected conceptsPart of the reviewed Cybersecurity Platform Economics; issuer definitions remain distinct where disclosed.
Company examples
1 reviewed companyRelationships reflect supported examples, not a normalized cross-company KPI ranking.
  1. The adjusted measure adds back selected cash outlays
  2. Cash conversion is separate from gross-margin performance
  3. Part of the Cybersecurity Platform Economics
  4. See It in Company Research
  5. Continue Research

Cybersecurity platform adjusted free cash flow margin measures adjusted free cash flow as a percentage of total revenue under Palo Alto Networks' non-GAAP methodology.

The company reported a 38.4% adjusted free cash flow margin for fiscal 2026.

The adjusted measure adds back selected cash outlays

Palo Alto Networks defines adjusted free cash flow by starting with free cash flow and adding specified capital expenditures and certain acquisition- and litigation-related payments.

It therefore should not be treated as identical to unadjusted free cash flow margin.

Cash conversion is separate from gross-margin performance

Working capital, stock-based compensation, capital expenditures, acquisition-related cash payments, and other timing effects can move cash conversion differently from product or subscription gross margins.

Compare it with subscription and support gross margin and RPO growth.

Primary source: Palo Alto Networks fiscal Q4 2026 earnings release.

Part of the Cybersecurity Platform Economics

Connects next-generation recurring contract scale, contracted backlog, product and recurring revenue mix, gross-margin conversion, and adjusted cash generation across a cybersecurity platform.

Browse the full operating model in Company Analysis →
Where this concept fits
  • Gross profit and cash conversionCurrent relationship
    Product and subscription/support gross margins show cost conversion across different delivery models, while adjusted free cash flow margin measures issuer-defined cash generation after specified adjustments.
    Adjusted FCF MarginCurrent conceptProduct Gross MarginSubscription & Support Gross Margin
  • Recurring contract scale and backlog
    NGS ARR and its growth rate capture the issuer-defined recurring run rate, while RPO growth captures contracted revenue obligations under a different accounting perimeter.
    NGS ARRNGS ARR GrowthRPO Growth
  • Product and recurring revenue mix
    Product, subscription, and support growth show how recognized revenue is distributed across hardware/software licenses and recurring service streams, while subscription and support revenue mix shows the weight of recurring revenue in the platform model.
    Product Revenue GrowthSubscription Revenue GrowthSubscription & Support MixSupport Revenue Growth

See It in Company Research

These companies are examples of how the concept is reported or discussed in public filings. Definitions can differ by issuer; these links open company research rather than a normalized metric comparison.

Continue Research

Continue from the concept into the Grizzly Bulls research surface that best matches the next question. These links are research continuations, not recommendations or required steps.

Compare stocks

Compare cybersecurity platform economics

Compare issuer-defined adjusted cash conversion separately from unadjusted free cash flow and accounting margins.

Continue research

Explore more topics in the Financial Research Encyclopedia.