Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly from both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin also strengthened, reflecting better cash conversion relative to revenue.
- Revenue increased compared to the prior quarter and the same quarter last year, while operating cash flow rose at a faster pace, leading to higher free cash flow. Capital expenditure also increased, but the growth in operating cash flow more than offset this, resulting in an improved free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, with operating cash flow showing a notable increase. Versus the same quarter one year earlier, all metrics—revenue, operating cash flow, free cash flow, and margin—were higher, indicating a year-over-year improvement in cash generation.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.0B
Cash generated by operations before capital spending.
CapEx
$282.0M
Capital spending and related asset purchases.
FCF margin
22.5%
The share of revenue converted into free cash flow.
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 |
|---|---|---|---|---|---|
| 2024-09-28 | $6.8B | $628.0M | $132.0M | $496.0M | 7.3% |
| 2024-12-28 | $7.7B | $1.3B | $208.0M | $1.1B | 14.2% |
| 2025-03-29 | $7.4B | $939.0M | $212.0M | $727.0M | 9.8% |
| 2025-06-28 | $7.7B | $2.0B | $282.0M | $1.7B | 22.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 198.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.7% | 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 Growth
Operating cash flow rose substantially compared to both the prior quarter and the same quarter last year, providing the primary lift to free cash flow. This improvement occurred alongside higher revenue, indicating stronger cash conversion from operations.
The increase in operating cash flow directly boosted free cash flow and the free cash flow margin, reinforcing the company's liquidity position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to the prior quarter and the same quarter last year, while operating cash flow rose at a faster pace, leading to higher free cash flow. Capital expenditure also increased, but the growth in operating cash flow more than offset this, resulting in an improved free cash flow margin.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, with operating cash flow showing a notable increase. Versus the same quarter one year earlier, all metrics—revenue, operating cash flow, free cash flow, and margin—were higher, indicating a year-over-year improvement in cash generation.
Monitor the trend in capital expenditure relative to operating cash flow, as the increase in capex could pressure free cash flow if operating cash flow growth moderates.